If I'd have 100K with 4,88 % interest for 6 moths?
2007-07-28 22:53:43 · 4 answers · asked by Somewhere in Time 3 in Business & Finance ➔ Taxes ➔ United States
State of California
2007-07-28 22:59:38 · update #1
I am an expat living abroad. I know I would pay US taxes if my income exceeds 80K so I am wondering if, including my earned interest on CD, the income is less than 80K - woud I pay any US/CA taxes at all? Another question, if CD matures at the end of January 2008, (if) do I pay U.S. taxes on it for 2007 year? Thanks!
2007-07-28 23:07:55 · update #2
Only the money you earn outside of the US is possibly eligible for the foreign earned income exclusion.
If your CD has earned interest (about $2,440), you will be subject to federal income tax on that amount even if you leave the money in the CD.
But, if all your other income is excluded, this amount of interest is not enough for you to owe any federal income taxes.
If you do not live in California then the interest is not taxed by California, even if the bank is in California.
2007-07-29 05:24:11 · answer #1 · answered by ninasgramma 7 · 1⤊ 0⤋
That interest income is fully taxable as ordinary income. It is NOT included in the Foreign Earned Income Exclusion, by the way, so ALL of it is fully taxable regardless of where you live.
The amount of tax you'll have to pay on it depends upon your total income and your marginal tax rate.
2007-07-29 07:58:29 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Are you asking just the state tax or the federal income tax as well? It's all going to come down to what other income you have as well as deductions.
2007-07-29 06:03:35 · answer #3 · answered by sursumcorda 6 · 0⤊ 0⤋
In what state?
2007-07-29 05:58:35 · answer #4 · answered by Anonymous · 0⤊ 0⤋