Interest earned on bank account $$ and taxes

[Scamula]

Okay,

I'm curious. Exactly how much money do you have to make before you have to file taxes? My "alternate identity" received a statement from her bank. In 06 she has made some pretty large deposits but not from a traditional job. And so, she gets paid interest on the savings account from her bank.

The bank sent her a statement that said that she had earned $50 something dollars in interest and that the info was being reported to the IRS!

What does this mean? What happens if she still just doesn't file taxes? Won't the gov't wonder how she got the money to make interest off of in the first place?

She doesn't want the gov't to take her cheese or freeze her bank account. Would it be better to just draw out the money over a period of time via an ATM?

[DoctaD]

In the uk we have ISA, Individual Savings Account.

Individual Savings Accounts (ISAs) are tax-free savings accounts which means individuals do not have to declare any income or capital gains they receive to the Taxman. Individuals can save up to ?7,000 each financial year. A financial year runs from 6th April until the 5th April the following year. You can choose to invest your money into a Mini ISA or a Maxi ISA however, you cannot invest in both in the same tax year.


I don't know if other countries have anything similar.

EDIT: Link Here (https://nationwide.custhelp.com/cgi-bin/nationwide.cfg/php/enduser/std_adp.php?p_sid=8ZQKj*ri&p_lva=43&p_faqid=311&p_created=1077807385&p_sp=cF9zcmNoPTEmcF9ncmlkc29ydD0mcF9yb3dfY250PTg1J nBfc2VhcmNoX3RleHQ9aXNhJnBfcGFnZT0x&p_li=1)

[torcher]

they could audit her, i think.

[odin_dax]

Okay,

I'm curious. Exactly how much money do you have to make before you have to file taxes? My "alternate identity" received a statement from her bank. In 06 she has made some pretty large deposits but not from a traditional job. And so, she gets paid interest on the savings account from her bank.

The bank sent her a statement that said that she had earned $50 something dollars in interest and that the info was being reported to the IRS!

What does this mean? What happens if she still just doesn't file taxes? Won't the gov't wonder how she got the money to make interest off of in the first place?

She doesn't want the gov't to take her cheese or freeze her bank account. Would it be better to just draw out the money over a period of time via an ATM?

Sorry, I'm still trying to figure out why you have another ID that's using onshore banks.

[torcher]

i was told that in the US if you make more than $600 in a year you have to file taxes. that is if the person you work for/with files you on they're taxes. i've worked "under the table" for 4 years and haven't had to file taxes. i went and got a regular job in 2006 so i have to file taxes with a W-2.

[SirScamAlot]

Of course reporting this revenue to the IRS is SOP. I don't see them performing an audit however it is possible. You do have a relatively big window of time though. I would recommened an offshore solution if you are worried about your acct being froze. I know of a couple. Just send me a pm if you want more info. Also any amount deposited into a bank acct exceeding 7k is reported to the IRS as per standard operating procedures. In the end if you are concerned its always better to be safe than sorry.


Oh and on another note. Thanks for directing me to eden

[Scamula]

Sorry, I'm still trying to figure out why you have another ID that's using onshore banks.
It's a long story believe me.

[Scamula]

Of course reporting this revenue to the IRS is SOP. I don't see them performing an audit however it is possible. You do have a relatively big window of time though. I would recommened an offshore solution if you are worried about your acct being froze. I know of a couple. Just send me a pm if you want more info. Also any amount deposited into a bank acct exceeding 7k is reported to the IRS as per standard operating procedures. In the end if you are concerned its always better to be safe than sorry.


Oh and on another note. Thanks for directing me to eden



I am a little worried about accounts being frozen but we have a large period of time in which to work as you stated.

And as for the part I bolded, that really does apply as we had a 10k deposit this year. So you said it is reported to the irs as standard procedure when u make a large deposit? Is it reported right then or do they just wait till jan 1st (tax time) and report it then? I'm sorry if this is a crazy question, but it has been a long day for me and my brain is fried.

And you're welcome. Eden really hooked me up.