Question by me_mommy: Do you have to pay taxes on money that you put throughout the year in your personal checking account?
Best answer:
Answer by Nrp77
No you don’t pay taxes on the money you put in a checking account, but if you have earned any interest off of that money in your account…then you must pay taxes on the interest. Hope that helps.
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Depends where the money comes from. If it comes from a taxable source then yes. If it is a cash gift then no. If it is cash tip money you are supposed to, but cash is easy to hide.
Assuming the money you deposit in your personal account is “After Tax” money you would only pay tax on any interest that you earn. Obviously if you have a tax liability on the money deposited in a personal account you are still are obligated to pay that tax.
No. You deposit money in your checking from being employed and your employer already withheld the taxes
US taxes are based upon your earnings, not what you have saved.
So, you could have a billion dollars in your checking account, but no taxes other than what you earned for that year, including things like interest, wages, business income, and so on.
The only way that you pay taxes on any checking account is if it is an interest bearing account, meaning that you make money off the bank for having your money sit in the bank.
In the US, you pay taxes on INCOME. Bank accounts are not income.