I have in mind 15%, but I am not sure.
In the UK it is 20% standard rate and 40% higher rate. (The unending wars we get involved in, do not come cheap).
2007-12-05 02:59:47 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
Unless you have failed to pay your Federal taxes in a timely fashion, and hence subject to "backup withholding," banks may not deduct any money for the payment of taxes. However, they are required to report your earnings to the Treasury and you are obligated to file a tax return and pay taxes on it. You may ask them to voluntarily withhold at the standard rate used for "backup withholding," which is, I believe 15%.
2007-12-05 03:14:41 · answer #1 · answered by OPM 7 · 1⤊ 1⤋
In the US there is no tax rate fixed to an saving account. The bank will issue a 1099 INT which will show how much interest you have earn during the year (same with dividends and capital gain). These will be reported to the IRS. You then have to file your own tax return that will include all your revenue, earnings and any deduction (and wages withholdings). Based on your earnings (including those received as interest on your saving account) you will have to pay a certain tax rate. Tax rate goes up to 40% for federal to which you have to add State tax. However because of deductions and different rate for capital gain(15% only for LT gain) or AMT, few people actually pay the max, but usually end up with a blended rate.
Talk to you tax accountant.
Good luck...we still have to finance a war and they kept on cutting taxes...what a country.
2007-12-05 03:33:12 · answer #2 · answered by crapaudblanc 4 · 0⤊ 0⤋
Unless you are subject to backup withholding, the bank doesn't deduct anything from your savings for taxes
2007-12-05 03:06:28 · answer #3 · answered by Craig T 6 · 1⤊ 0⤋
no deduction. you're requred to report all your interest income on your tax forms.
2007-12-05 03:07:27 · answer #4 · answered by redwine 6 · 0⤊ 0⤋