My boyfriend and I just opened a joint ING savings account and he was wondering if we will have to pay taxes on the interest earned through this type of account or that we will have to claim them on our taxes at all. Any information will be greatly appreciated, thanks so much!
2007-08-20 16:50:08 · 3 answers · asked by Isabella's Mommy Expecting #2 6 in Business & Finance ➔ Taxes ➔ United States
Interest income is taxable unless it is from tax exempt sources (usually municipal bonds, etc)
If the amount of interest is $10 or more, the bank will send a 1099 INT to you and the IRS. If you do not include this income on your return, the IRS will send you a note explaining that you failed to report all your income.
If it is less than $10, you are still supposed to report it, but nothing will be mailed to you or the IRS.
2007-08-20 17:41:43 · answer #1 · answered by Mark S 5 · 2⤊ 0⤋
1. This is interest income from the bank account. It is your income and is taxable. You must report this from your bank account statement, even if you don't get 1099-int.
2. Since this is a joint account and both of your file separate return, now the question is who will report this on his/her return. Normally, the person whose name appears first in the bank account list. Find out about this.
2007-08-21 04:02:52 · answer #2 · answered by MukatA 6 · 2⤊ 0⤋
Yes, you will have to pay tax on the income. Interest income is fully taxable as ordinary income.
2007-08-21 04:58:14 · answer #3 · answered by Bostonian In MO 7 · 2⤊ 0⤋