The tax lady I talked to told me I was liable for nothing because I earned so little. My dad says that I have to pay taxes on the interest because it is "passive income". I already filed my taxes so I'm kind of worried that I may have made a mistake AND that I will have to pay a bunch.
2007-03-12 16:27:26 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
If you're filing single and you claim yourself, then you dont have to file if your income was less than $8,450.
If someone else can claim you as a dependent, you wouldnt have to file unless your income was over $5,150.
If your dad claimed you as a dependent, the most your taxable income couldve been was $850. Tax on this wouldve been $85 at most.
2007-03-12 19:50:21 · answer #1 · answered by tma 6 · 0⤊ 1⤋
If you already filed your taxes, then you have other income. The tax lady was confused, because if you filed, you were required to file all of your income, not just selected income.
So your dad is right, you have to include the interest on the savings bond as income.
Treasury interest on a savings bond is taxable on the federal return but not taxable on the state return.
If you received the Earned Income Credit and have interest income of $2,800 or more, you cannot receive the EIC.
You must file an amendment and pay the tax. The IRS will have a record of your savings bond interest.
2007-03-12 23:51:57 · answer #2 · answered by ninasgramma 7 · 0⤊ 1⤋
Your personal deductions should nullify any amounts owing.
2007-03-12 23:31:30 · answer #3 · answered by smiling_freds_biz_info 6 · 0⤊ 1⤋