I have a little bit of cash, and i am wondering if it will be taxed if I deposit it into my bank account?
2007-07-09 19:13:02 · 5 answers · asked by David 2 in Business & Finance ➔ Taxes ➔ United States
No, it is already earned income and the fact that you are putting it into a banking account does not create a taxing status. However, any interest that you may earn on that money is taxable and the bank will issue a 1099 to you with a copy to IRS.
2007-07-09 19:18:30 · answer #1 · answered by pjallittle 6 · 0⤊ 0⤋
Hmmm....
My instincts tell me this is a loaded question. Therefore, I will give two different answers, just in case I am wrong.
If the question is simply about money that has already/will be reported on a tax return, then the answer is simply only the interest will be taxable.
However, if you are asking if a question might be asked of where the money came from if you deposit it? The answer is more than likely yes, depending on the amount.
2007-07-09 20:40:14 · answer #2 · answered by Russ B 6 · 0⤊ 0⤋
That depends on where it came from. If it's already been taxed, or was a gift to you, then no it isn't taxable. If it's money you just earned from working, then if your income for the year is high enough, you are required to report it and to pay tax on it.
2007-07-09 23:47:28 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
Not the principal, just the gain (interest).
2007-07-09 19:28:51 · answer #4 · answered by ? 5 · 0⤊ 0⤋
Anything less than $10K is not reported by your bank...over $10K and it is.
2007-07-09 19:18:34 · answer #5 · answered by kajun 5 · 0⤊ 4⤋