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Home >> Special Situations >> Deceased Individuals
Inherited CDs: what about Tax Reporting?
I inherited several CDs from my mother, with a POD designation. The banks reported interest earned after death on 1099s using her Social Security number. Since they were POD to me, shouldn't they use my Social Security number?
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 Yes, they should have, but the bank may not have known of your mother's death or simply failed to list your Social Security number on its files in time to make the year-end report correctly. You can declare that income on your tax return regardless of the SSN reported by the bank, but contact the bank and ask that its records be corrected and that a revised 1099-INT be provided.
To be absolutely correct, the banks should issue two 1099s for the year of your mother's death. The first, with your mother's SSN, should include interest paid through the date of death. The second, with your SSN, should include interest paid after your mother's death.
Published on BankingQuestions.com 1/28/10
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