Warning: Illegal string offset 'name' in /home/damageat/public_html/wp-content/plugins/genesis-simple-sidebars/plugin.php on line 53

Warning: Illegal string offset 'description' in /home/damageat/public_html/wp-content/plugins/genesis-simple-sidebars/plugin.php on line 55
Do I have to pay taxes on a CD if the money invested is from a personal injury settlement?

Do I have to pay taxes on a CD if the money invested is from a personal injury settlement?

personal injury
Felipe G asked:

I recently recieved my settlement for a job related injury and would like to invest my money in a CD. Would i have to pay taxes on the interest earned on this investment?

Related posts:

  1. Do you have to report Tax-free money received in Personal Injury Settlement?
  2. Do I pay taxes on a personal injury settlement?
  3. are there taxes on personal injury settlements?
  4. In California does a person have to pay taxes on a (physical) personal injury settlement?
  5. In a personal injury case, are medical lien holders entitled money if the settlement is awarded as pain/suffer

Comments

  1. KirksWorld says:

    Yes, that instrument is a taxable income source.

  2. Brian G says:

    Yes, the interest is taxable no matter where the investment money came from.

  3. Todd S says:

    Of course…regardless of where the funds come from, if you’re earning interest, you pay taxes.

  4. Lore says:

    Yes, you always have to pay taxes on interest.

  5. Jo Blo says:

    yes,,
    you’ll get a 1099INT from the bank, you’ll need to report that amount on your tax return

  6. bostonianinmo says:

    Yes. Although the award may be tax-free, any interest or dividends your earn by depositing or investing it is fully taxable.

  7. acmeraven says:

    It doesn’t matter where the money comes from; if you invest it and earn interest the interest is taxable. Here is a suggestion however; visit with a stockbroker and put the money into TAX EXEMPT instruments. A state bond pays interest that is not taxable by the IRS and also not taxable by the state that issues it. Example; in Montana a Board of Housing Bond is taxed by neither fed nor state and rate of interest is higher than a CD. They are usually tripple A rated and insured so civilization would collapse before anything is placed at risk.

  8. Judy says:

    You’d pay tax on the gain from any investment that you make with the money, including interest on a CD. Only the initial principal amount comes to you without being taxed.

  9. Deb S says:

    Yes. It doesn’t matter where the money came from. You always pay tax on the interest if it is enough to have to claim.

Leave a Reply to bostonianinmo Cancel reply

*