I mean some banks say they can only take less than 10k deposit one time other wise it will be reported to IRS and the others say if you deposit that much money you'll have to pay taxes to the govt? Is that true even though the money was saved from lawn mowing, paper routes and allowances combined? Are we living in a communist system if this is true?
2007-10-06 09:21:27 · 8 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
To thin Abuit: Who said it wasn't paid tax on it? I just said it wasn't deposited in the bank for not wanting to pay earned interest on it. Idiot!
2007-10-06 09:40:33 · update #1
Again to Thin Kaboudit: You must be so jealous of me having that much saved up becuz you're a low life, nicotine addict, unemployed, convict or ex-con idiot! Am I right? I know I'm right about you.
2007-10-06 09:44:52 · update #2
Deposit the money in the bank before someone breaks into your house and steals it.
Banks automatically report all big a/c, but IRS will only take notice if they suspect something fishy. If they do, they may want to know how you got the money.
If you earned it over several years and your income in those years was below the taxable limit, you will have no tax to pay.
Note that by not putting it the bank, you have been losing about $2,500 per year interest and around $1,500 from inflation.
2007-10-06 11:37:12 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The money in the bank is always yours, the taxes you pay on it are already done if you've been claiming it as earned income on your tax forms. Banks don't take taxes out.
Yes, any deposit of $10,000 or more is reported but that's all they do, nobody comes and puts a hold on it. The IRS and FBI only look to see if there's drug money involved, they don't take anything you put in the bank. People can and do receive inheritances, prize money, lottery money and put more than $10,000 at a time in the bank so there's completely legit reasons to do more than that amount at any one time.
If you want to open 10 different banking accounts, and deposit a portion in each, that's perfectly fine. I've got three accounts myself.
It's legitimate and totally your decision. Or you can put all the money into the bank in one account, that's fine too. OR you can go to one of those money safety deposit boxes and just stick the actual cash in one of those and have it be in there instead of in a bank account. There's other options as well, so really, no reason to sequester it at home under the bed or whatever.
2007-10-06 17:27:47 · answer #2 · answered by Elaine M 7 · 0⤊ 0⤋
If this money was paid to you in cash then yes you have to pay taxes on the money ( tax evasion ) go to 5 different banks deposit 9999.00 in each account , or 9900.00 and put the left over in your pocket ,
It is not communism it is paying your share in to the tax system ....I do know how you feel , after I deduct taxes from my employees checks I have to match that amout with my money , then pay taxes on what I have ... I sent Uncle Sam over 35 grand this year , and I do not get refunds , ... on cash money the tax should be around 30 something % for that amount ....
You could open a IRA account and deposit little at a time or buy cd's seperatly , you could make the money for your taxes in ten years plus have your 50k and maybe some extra , talk to your bank about your options on CD's and IRA's ....they will help you , you have cash ..
2007-10-06 16:39:10 · answer #3 · answered by Insensitively Honest 5 · 0⤊ 0⤋
First I would like to address the person who answered your question by saying all income should be taxed. The 16th amendment was never ratified thus making collection of income tax unconstitutional. Secondly, you should definately seek professional help with someone you trust. It is my understanding that you can deposit any amount of money into the bank at one time. Although depositing more than 10k will cause the IRS to investigate the origination of the money.
2007-10-06 22:33:02 · answer #4 · answered by carly sue 5 · 0⤊ 0⤋
No taxes due on $ you deposit in bank. They will report to IRS any cash deposits of $10,000 & over. IRS won't care unless you deposit more and regularly. They wanna make sure you're not dealing drugs, laundering $$ or other illigal activities.
You don't need an accountant or lawyer.
With regards to your last question, we're not living in a communist system. We are living in a capitalist system where government has taken away most of our freedoms and wants to know how many times each citizen scratches his/her butt. Communist countries that took away citizens freedoms also, but at least they gave them free medical care. Our capitalist gov't won't even do that.
2007-10-06 16:46:28 · answer #5 · answered by john p 3 · 1⤊ 0⤋
I was unaware that the income tax was not payable on income earned from mowing lawns and delivering newspapers. Can you remind us of the tax code that exempts those activities from taxation?
I predict with a high level of confidence that you have some jail-time in your future!
2007-10-06 16:32:56 · answer #6 · answered by Anonymous · 2⤊ 0⤋
You've never drawn interest on it and tax was paid on it when earned. Put it in an account now and the only tax will be what is earned on it. Check with your accountant to verify your situation. If you do not have one.....GET ONE!!
2007-10-06 16:26:18 · answer #7 · answered by David G 3 · 0⤊ 0⤋
You want people with a brain to think that someone has $50,000 from lawn mowing & paper routes ?
What , the allowance was $49,000 ?
I would be prepared to show employment documents from that newspaper company !
Or was there some crack / meth in each paper ?
NOT communist , just people with actual brains . . .
Good Luck with this one . . .
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2007-10-06 16:43:15 · answer #8 · answered by kate 7 · 0⤊ 0⤋