How much tax do you pay in the USA when you earn interest on a certificate of deposit?
2007-05-02 14:27:16 · 7 answers · asked by planeboy747 1 in Business & Finance ➔ Taxes ➔ United States
SOLUTIONS ACCOUNTING TAX AND CONSULTING! THEY'RE THE BEST AND SERVE ACROSS THE COUNTRY! 1-866-I ACCT 4 U! WWW.1BETTERSOLUTION.COM
2007-05-02 14:30:39 · answer #1 · answered by Nek Nek 2 · 0⤊ 2⤋
That depends upon your marginal tax rate. Interest is taxable as ordinary income. Anywhere from 0% to 35%.
2007-05-02 17:00:20 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Generally, all interest is taxable. The exception is the interest from tax exempt municipal bonds.
2016-05-19 02:58:28 · answer #3 · answered by ? 3 · 0⤊ 0⤋
From zero to 35% for federal, depending on your tax bracket. There might also be state income tax.
2007-05-02 14:39:50 · answer #4 · answered by Judy 7 · 1⤊ 1⤋
Interest on a CD is called unearned income and unless you are under 18, that is part of your income.
2007-05-03 03:57:51 · answer #5 · answered by taram 3 · 0⤊ 0⤋
It's ordinary income, and your tax rate depends on your marginal tax rate.
2007-05-02 14:30:24 · answer #6 · answered by Anonymous · 1⤊ 0⤋
Tax payable is based on your total tax liability.
2007-05-02 14:54:57 · answer #7 · answered by SGElite 7 · 0⤊ 0⤋