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| *Loan,banking and credit>>>tax accounting |
If you have money sitting in a savings account earning interest, do you have to pay quarterly estimated taxes? |
If not, can a person collect interest on their money all year long and just pay taxes on the interest at the beginning of the following year? Does it matter the amount? What if a person has ten million dollars sitting in an account earning interest? If you expect to have a tax liability over $1,000 that is not covered by withholding, then you are supposed to pay estimated taxes. If you earn enough interest to owe $1,000 in taxes on the interest, you should send in estimated tax payments. ask this in business & finance (taxes) no, but you do have to pay income tax on iit-you will get a 1099 form for the irs If you have enough to leave 10 million in a savings account then you know you need to pay quarterly. If it is just a piddly amount like 1 or 2 thousand, then unless you have a lot of other taxes that need to be paid quarterly, the IRS will probably not go after you if you pay annually. Just be sure to declare the interest and pay. no, only at the end of the year it's not road tax. If your total tax liability is expected to exceed $1,000, you must make quarterly estimated payments. It depends on how much interest you're getting. If you had $10,000,000 in your account, then yes you should. At tax time, if you don't have most of your taxes already paid, you can be penalized for under-withholding. |
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