Report Declaring income earned on Costa Rican Certificates of Deposit for U.S in Open Forum - Topics NOT specifially related to Life in Costa Rica Posted July 12, 2013 Jim, I think you're absolutely right. The interest credited in any tax year must be declared in that tax year whether you actually withdraw it or not. What you say makes perfect sense. Dana, close. The "earned income tax exemption" applies only to income you earn through your own work efforts. That is, you must declare but may exclude up to around $95,000 in salaries and commissions earned through your own work, but you may not exclude interest, dividends, rents, profits from sales, etc which do not derive from your own actual labors.