Question : Do I have to pay tax on a saving account interest?
What if I never remove money from the account or add money to the account. This would mean I am paying tax on almost the same amount of money each and every year. What is good is the interest if it taxed up. also If I had bought something collectable instead and then sold it for profit I would have paid no tax.
- asked by Steve T
All Answers:
Answer #1
In the US ... yes.You should get a 1099 form fromyour bank.It is silly, but the interest won't makea signifigant difference in your AGI.
- answered by Jaclyn&Dave
Answer #2
Yes, savings account interest is taxable income. How much it's taxed depends on how much otherincome you have. It doesn't matter how much youdeposit or withdraw during the year. Only theinterest earned is taxed (not the actual balancein the account).Lots of luck buying collectibles. It may take years for them to go up in value - ifthey go up at all. Also, they're not necessarilyeasy to sell at a good price if you're in a hurryfor the cash. If you're really looking to makemoney and reduce your tax bill, don't buycollectibles - buy mutual funds.
- answered by Mike
Answer #3
The tax rate on collectibles is your ordinary taxrate, max of 28%.The tax rate on your savingsaccount is at most 35%. You act like it's 100%.
- answered by v b
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