Could somebody provide a link to an accurate table or numbers. Thanks!
2007-12-23 03:17:36 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
The bank will issue you a statement showing how much interest you got each year. There is then a line on the income taxes to show the grand total interest you got, and a separate sheet where you list how much money from which banks.
Your tax rate depends on your total income from all sources, less your deductions ... payroll, bank accounts, capital gains, whatever.
In case of mail going astray, it is useful to compare what all papers you get for tax years 2006 and 2007 to see if anything is missing. You should also remember what new institutions you doing business with in 2007 not in 2006 and watch out for their papers. Then if something you should get is missing, you go after that before tax payer deadline.
If the CD's are part of an IRA, then there is a place to report interest earned that is taxes deferred until your tax rate is lower.
2007-12-23 11:06:29 · answer #1 · answered by Anonymous · 0⤊ 2⤋
The interest earned is taxed as ordinary income and is added to your other income to determine the tax rate. It is not taxed at a separate rate so there are no "tables" that will tell you what the tax bite will be. The amount is entered on the Taxable Interest line on your tax return. If you had more than $1,500 in taxable interest you must also file Schedule B with your Form 1040 tax return.
Here's a link to the instructions for Schedules A&B: http://www.irs.gov/pub/irs-pdf/i1040sa.pdf
2007-12-23 03:30:59 · answer #2 · answered by Bostonian In MO 7 · 3⤊ 0⤋
you'll need to add it to your income when you do your taxes
2007-12-23 03:26:11 · answer #3 · answered by hi91977 3 · 0⤊ 0⤋