Q. What percentage of the interest I earn on my CDs will go to taxes?

A.Interest from CDs or savings accounts is counted as regular income. It's taxed at the same rate as the earnings from your job. If you wind up in the 25% tax bracket after taking all of your deductions, that's how much you'll pay on your interest income.

Your bank or savings institution will send you a 1099-INT form stating the amount of interest that your CDs earned. The total should be entered on Income Line 8A on your 1040. If the income from your CDs is more than $1,500 you will have to attach schedule B.