2006-10-15 18:05:40 · 3 answers · asked by Wade M 1 in Business & Finance ➔ Investing
No enough information. Your tax obligation would depend on what other income you have for the year, the interest rate on the CD, where do you live, your age, marital status and whether you have children.
Best wishes.
2006-10-15 18:13:18 · answer #1 · answered by JQT 6 · 0⤊ 0⤋
Gee Wade, I don't know how to tell you this, but cds arent' an investment. They are interest-bearing instruments. But why tie up money that, if needed, gets penalized??? Use a money market bank, credit union, or mutual fund that has no penalties involved.
Good Luck
2006-10-15 18:14:22 · answer #2 · answered by snvffy 7 · 0⤊ 0⤋
Depends on the interest rate as well as your tax bracket.
Let's say the annual interest rate (APR) is i and your highest tax bracket is x, then the amount of tax you'd pay on the interest earned would be 300,000*i*x
For example, if you earned 5% APR and your highest bracket is 28%, you'd pay $300,000 * .05 * .28 = $4,200
2006-10-15 19:00:52 · answer #3 · answered by djc 3 · 0⤊ 0⤋