2007-04-03 17:18:38 · 6 answers · asked by Wm.Dauhgter 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
As long as the account doesn't pay any interest, there will be no tax due. But that's a pretty DUMB reason to put your money in a non-interest bearing account!
2007-04-04 02:09:21 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
You are taxed on the interest the bank pays you for the money you have on deposit.
The more you deposit the more interest you make and the more you'd pay in taxes. But not having the money in the bank would be far far worse than paying part of the earnings in tax,, it would be the same as paying 100% tax!!
2007-04-04 02:01:28 · answer #2 · answered by Jo Blo 6 · 1⤊ 0⤋
Its not what you put in the bank thats taxed. You've already paid tax on that presumably. Its the interest the bank pays you on that amount that is taxed. So you can put as much as you want in the bank, as long as it doesnt draw interest you wont pay taxes.
2007-04-03 18:38:37 · answer #3 · answered by jeff410 7 · 0⤊ 0⤋
You aren't taxed on the money you put in. You are taxed on your income which is reported to the IRS by your employer. You are taxed further on any money you make with that money. Like interest from the bank.
2007-04-03 17:23:28 · answer #4 · answered by greenfrogs 7 · 0⤊ 0⤋
The government doesn't look at bank accounts as the basis for income tax. It looks at where the income came from. If a person has wages, interest income, business income, hobby income, gambling/game show/prize income, income from the sale of assets, and other income from various sources, that person is expected to pay any tax due on that income, based on their living expenses and situation. The Internal Revenue Code is a body of law that was developed (and is ever-changing and being re-developed) to define the rules for taxation and to explain what income is taxable and under what circumstances people have to pay income taxes.
2007-04-03 17:25:59 · answer #5 · answered by Peggy K 5 · 0⤊ 1⤋
You can put in alot. Becareful not to put more in that year then what you have said that you made. also make sure you don't have more going out in bills then you say that you have coming in total. You may want to put a trustworthy person on a savings or checking accout with you. This way if you are asked about it, noone knows how much is yours or how much came from the other persons full time job. You dont have to pay any taxes on money you put in to a retirement account.
2007-04-03 17:39:08 · answer #6 · answered by ?? 2 · 0⤊ 3⤋