tax on savings interest sucks

[OS]

I have some 5 figure emigrant account and now that it is tax time, i am reminded i have to pay tax on the interest, which sucks because the interest rate on the savings account doesn't even beat inflation, let alone when you take out for the tax.

 

[jadinolf]

You pay tax on your income. That's it.

 

[d33pt]

yeah that is pretty lame. the money you put into your savings account is already after-tax.

 

[Dr. Detroit]

Basically the Govt. wants to stimulate the economy by encouraging people to spend but not save

Post-tax investment income being taxed is complete trash

 

[sygyzy]

Originally posted by: jadinolf
You pay tax on your income. That's it.

And you're an idiot!

 

[jadinolf]

Originally posted by: sygyzy

Originally posted by: jadinolf
You pay tax on your income. That's it.

And you're an idiot!

Thanks for the flame. I would expect that much from an eleven year old.

You pay tax on your income. I did not make the rules.

 

[TallBill]

Next year will be the first year that this will actually be an issue for me.

 

[hx009]

Originally posted by: jadinolf

Originally posted by: sygyzy

Originally posted by: jadinolf
You pay tax on your income. That's it.

And you're an idiot!

Thanks for the flame. I would expect that much from an eleven year old.

You pay tax on your income. I did not make the rules.

You apparently also don't know the rules. Interest earned on savings is filed as income with form 1099-INT or similiar.

 

[SearchMaster]

Originally posted by: hx009

Originally posted by: jadinolf

Originally posted by: sygyzy

Originally posted by: jadinolf
You pay tax on your income. That's it.

And you're an idiot!

Thanks for the flame. I would expect that much from an eleven year old.

You pay tax on your income. I did not make the rules.

You apparently also don't know the rules. Interest earned on savings is filed as income with form 1099-INT or similiar.

I think that's what he's saying. You pay tax on the year's INTEREST/INCOME from the account, not on the account balance itself.

 

[bookem dano]

www.ingdirect.com
www.capitialone.com
www.netbank.com
www.geinterestplus.com

are all places for savings accounts that do far better than a normal bank.