Does the federal government tax you on money put into bank accounts other than direct deposit?

Question

I'm a student at a college and I'm worried if I deposit an extra 100$ or 300$ that say my grandparents give me, into my checking account, they will count that as a source of income for tax purposes. I get a little financial aid and would like to keep it.

Answer 1

No.

Answer 2

The federal gov doesn't tax you on any money you put in a bank. It will tax your income and it will tax any interest you earn. If it is a checking account it probably doesn't pay interest so it doesn't matter.. Gifts generally are not taxable income. From the wording of your question it sounds like you are lying though and working under the table somewhere,. In which case you deserve to get caught.

Answer 3

No.

As far as I know, banks are private institutions and don't have to turn over your account balances to the government.

You also can receive up to $11,000 annually, as a gift, without having to pay taxes.

You do however have to pay tax on the income generated if your checking account yields interest, which typically is pennies or maybe a few bucks a year.

(That is totally different than the money you put in)

Answer 4

Money deposited in a bank account does not mean it is taxable. The reason for recieving the money triggers any tax that may be due.

Answer 5

Social Security can not be garnished, but once it has been deposited into your checking it can. Having the check sent directly to you will avoid that, but you need to figure out where you can safely keep your money. Do you have a son or daughter that you could trust to have a joint account with?

Answer 6

Gifts are not taxable to the receiver.

Answer 7

No, small gift amounts like that are not taxable.

Answer 8

Absolutely not!