Interest on CDs and savings....?

Question

I'll probably make about $40-50 in interest from my CDs and savings accounts, do I have to file with the IRS? I'd probably owe nothing on it but just asking.

Answer 1

If you get a 1099-Int from the bank(s) and have enough other income to end up with taxable income you will have to file with the IRS and report the interest income. If that's all your income for the year then no you won't have to file, but I'd like to know how do you manage to survive?

Answer 2

If your income from all sources is below the filing requirement for your filing status, then you do not have to file a return and report your interest. You are not required to file a return only because you have interest income.

But if you are required to file a tax return, you will record the interest payments you receive as income. There is a separate line on your Form 1040 (or 1040A) for interest received.

Answer 3

Yep, interest income is reported to the IRS, gotta claim it. There's a place for interest income on the forms. Congrats on making a good investment!

Of course, you don't have to report ANY income below threshold of about $850. That is, your total, gross earnings are less than $850, then, filing is voluntary.


"You must file a return if any of the following apply.
• Your unearned income was over $850.
• Your earned income was over $5,150.
• Your gross income was more than the larger of—
• $850, or
• Your earned income (up to $4,850) plus $300."

From instructions for IRS form 1040ez, dated 2006

Answer 4

Yes, you do have to claim that on your tax return. Interest on CDs and bank accounts is taxed as ordinary income.

However, if that's your ONLY income, it's well below the filing requirement and you don't have to file or pay any tax on it.

Answer 5

yes..if the interest occurs in a taxable account it is taxed as ordinary income (not an IRA acct).