Hi, All,
I earned interests both on my checking account and High-Performance Money Market. I received a report from the bank (cannot remember the type of form, something like 1099...)of the total interests I earned for year 2005. When H & R tax preparer helped me with the filing of tax return, I asked if I need to pay tax for the interests earned and showed her the report. She didn't even look at it and said I don't need to. I just want to make sure that for a resident alient, do I need to file tax on my interests earned on checking/HPMM/CD? Thanks a lot.
2006-12-27 05:43:59 · 3 answers · asked by miaomiaogiant 1 in Business & Finance ➔ Taxes ➔ United States
sorry, I am a non-resident alient.
2006-12-27 06:58:55 · update #1
The interest from those accounts is taxable. Yes you did get a form 1099-Int from your bank. and guess what? your bank sent the same form 1099-int to the IRS. So, if I were you, I would file a 1040-x pretty quick, or wait for them to send you a letter. either way, there is pretty much no escaping that. The computer program the IRS runs will catch that pretty quick.
2006-12-28 04:40:52 · answer #1 · answered by Dave 3 · 0⤊ 0⤋
Yes, you do. Interest is taxable income, and if you got a 1099 for it, it was reported by the payer to the IRS. You might be hearing from the IRS on this eventually (it can take a couple years).
H&R Block has many competent employees, but some are not well trained.
2006-12-27 14:34:26 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Yes that income is taxable on your 1040. One exception is that IRA income is not taxed until you take it out. Your preparer sounds clueless.
2006-12-27 13:56:39 · answer #3 · answered by spicertax 5 · 0⤊ 0⤋