I live in the state of Ilinois and was wondering how much % wise is taxed on interest income if that is your only means of income.
2007-06-22 06:27:12 · 4 answers · asked by angryviper 1 in Business & Finance ➔ Taxes ➔ United States
It's taxed as ordinary income, which means that for income tax purposes it's taxed the same as if you had made it from a job. So the rate depends on your total income. If that's less than the limit where you have to file and pay taxes for your filing status, then you wouldn't pay taxes on the interest income - if it's more than that, then you do.
2007-06-22 08:13:31 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Interest is taxed as ordinary income at the Federal level. You'll have to check with the IL authorities on how they handle interest income.
On your Federal return you claim it on Schedule B. If you expect to owe more than $1,000 in taxes for the year you must also make quarterly estimated tax payments using Form 1040-ES. Most states with an income tax have similar procedures. Check with your state's tax authorities or website for your state's rules.
2007-06-22 14:04:22 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Illinois taxes it as regular income, at a rate of 3% after your $2000 per person exemption.
2007-06-22 18:05:13 · answer #3 · answered by CarVolunteer 6 · 0⤊ 0⤋
its taxed as regular income.
2007-06-22 13:32:01 · answer #4 · answered by cashmaker81 6 · 0⤊ 0⤋