I cash checks from credit cards that I use and place into my free checking account. Since the money is placed into the free checking account, I do not earn any interest, but I pay interest to the credit cards for the money I borrowed. And, I use the credit card checks to pay bills. Is this money taxable?
2007-04-07 17:14:42 · 9 answers · asked by Manuel P 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
No this money is not taxable, this is not Earned Income.
Nor is the interest or the high fees you pay, tax deductible.
There is no tax impact to what you are doing, only huge expense.
2007-04-07 17:35:09 · answer #1 · answered by Amadeus 2 · 0⤊ 0⤋
If you take $100. out of your shirt pocket and put it in your pants pocket,, have you made any money?? do you have more money?
The money from your credit card check is borrowed money,, not earned money. It's not like having a job,, you have borrowed the money and are required to re-pay to the credit card company.. No,, you pay no tax
2007-04-07 17:20:10 · answer #2 · answered by Jo Blo 6 · 1⤊ 0⤋
no. only the money you are supposed to be making to pay off the credit card debt is taxable..
You right now are only robbing Peter to pay Paul as the saying goes.. It will catch up with you later when you realize soon you will owe thousands in credit card debt... Unless you are a smuck and will cop out and file bankruptcy, only to do this circle all over again in future..
2007-04-07 17:19:41 · answer #3 · answered by Mintee 7 · 1⤊ 0⤋
Yes.
Any monies from any source other than yourself is classified as income.
Incidentally, since you don't pay the taxes that would be paid for you on your behalf by an employer (which is how people have tax returns), you'll have to pay through the nose for that as well.
Talk to a CPA or Tax Attorney, you MAY be able to claim the interest you have to pay.
Fun Fact: You are entitled to a Tax Return after filing your tax form if you have "loaned" the government money in the form of over-payments on the tax your employer forwards to the Tax People for you.
2007-04-07 17:23:16 · answer #4 · answered by jcurrieii 7 · 0⤊ 1⤋
No, its not income, so you don't have to declare it.
You're just borrowing money from yourself (at exceptionally high interest rates!)
You DO realize that you have to pay the money back to the credit cards PLUS interest, don't you?
2007-04-07 17:18:34 · answer #5 · answered by Anonymous · 1⤊ 0⤋
No, it is zero sum. Unless you make interest off the cashed checks, it is zero sum.
2007-04-07 17:18:47 · answer #6 · answered by fade_this_rally 7 · 0⤊ 0⤋
Nope. But that's a damn stupid way to get money.
2007-04-07 17:23:07 · answer #7 · answered by i♥sf 5 · 0⤊ 0⤋
thats insane
2007-04-07 17:17:53 · answer #8 · answered by ~Lisa~ 3 · 2⤊ 0⤋
yes.
2007-04-07 17:17:32 · answer #9 · answered by Pancho D 2 · 1⤊ 1⤋