Savings
How much income tax do savings cost?
I’ve heard that you only have to pay income tax on savings accounts if you take out money. Is that true? If you do take out money how much do you have to pay. What if you took out money to pay for classes, will you have to pay less income tax; how much less? What other things can you buy that will cost you less or no income tax? Can you give me an example?
What kind of savings account?
If this is a regular account at the bank, you pay tax on the interest income each year but nothing when you take the money out.
If it’s a brokerage account invested in mutual funds, then there can be capital gains when the mutual funds are sold (and you have to sell them to get the money out). The tax is only on the GAIN, not the entire amount. Commonly called UGMA and UTMA accounts.
If this is a tax deferred savings account (529 plan or coverdell ESA), then you don’t pay taxes each year, but then look at what the money is spent on when it’s withdrawn. If it’s used for qualified educational expenses, it’s tax exempt. If not, tax + 10% penalty.
Personal Finance Tips : Savings Account Tips
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Juniper Networks Equipment Lot – 95% savings $995,000.00 |
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Mercedes-Benz : E-Class E550 2dr Cab 2011 E550 Cabriolet: Certified Pre-Owned, Exceptional, Huge Savings vs. New $59,888.00 |
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Mercedes-Benz : M-Class ML550 4MATIC 2011 ML550: Executive Demo at Authorized Mercedes Dealer, Incredible Savings! $53,310.00 |
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Land Rover : LR4 HSE 2011 LAND ROVER-LR4 HSE-YEAR END DISCOUNT!!!! NO ACCIDENTS-HUGE SAVINGS!! $47,900.00 |
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Land Rover : LR4 HSE 2011 LAND ROVER-LR4 HSE-YEAR END DISCOUNT!!!! NO ACCIDENTS-HUGE SAVINGS!! $47,700.00 |
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Ford : Mustang 2012 FORD MUSTANG BOSS 302 RECARO SPORTS PACKAGE MINT CONDITION SPECIAL SAVINGS $39,690.00 |
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Chevrolet : Suburban LTZ **ONE OWNER**2009 CHEVY SUBURBAN LTZ 4X4 1500**HAPPY NEW YEAR SAVINGS!! $31,955.00 |
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Infiniti : G Sedan w/Leat 11 INFINITI G37 LEATHER – HUGE SAVINGS $25,995.00 |
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Buick : Lacrosse CXL FWD LEAT 10 BUICK LACROSSE CXL LEATHER – HUGE SAVINGS $21,495.00 |
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Toyota : RAV4 FWD 2.5 4 Cy 11 TOYOTA RAV4 AUTO 2.5L – HUGE SAVINGS $18,495.00 |
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Jeep : Commander 10 JEEP COMMANDER 3RD ROW LEATHER – HUGE SAVINGS! $17,695.00 |
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Land Rover : LR3 SE Best car I have ever owned! Rare gas-saving 6-c luxury LR3-SE in excellent cond $17,500.00 |
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HUGE HOLIDAY SAVINGS! 2012 FUN FINDER XT245 TOY HAULER! $16,988.00 |
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Jeep : Compass Latitude 11 JEEP COMPASS LATITUDE – HUGE SAVINGS! $16,495.00 |
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Jeep : Compass 4X4 Sport 2. 10 JEEP COMPASS 4WD SPORT – HUGE SAVINGS $14,995.00 |
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NEW ALTUS APS-3U GPS ROVER PACKAGE ~ $1348 SAVINGS $14,995.00 |
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Nissan : Altima 10 NISSAN ALTIMA LEATHER 2.5L AUTO HUGE SAVINGS $14,495.00 |
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Jeep : Grand Cherokee Laredo Lifted 2007 Black Jeep Grand Cherokee WK Tinted Fuel Saving V6 4×4 No Reserve $14,000.00 |
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Raymond A. Massey Original Oil Painting with COA – Private Seller – Huge Savings $12,500.00 |
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Great Daniel Roth Master Chronograph Watch Big Savings! $12,493.00 |
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2007 Low Hour NO RESERVE $21k SEA DOO Jet Boat w/fuel saving 155HP 4tec Motor $12,125.00 |
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Smart Black Smart Car that thinks its a Porsche & Will Pay For itself in Gas Savings $11,500.00 |
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2012 25RB SUNSET TRAIL RESERVE REAR BATH NEW YEARS DAY SALE HUGE SAVINGS SAVE $$ $10,100.00 |
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2012 Jayco Greyhawk 31FK Class C Motorhome In Stock! Fall Savings Factory Rebate $10,000.00 |
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ESP400M ROLL UNWIND PROCESSOR – ENERGY SAVING PRODUCTS $9,000.00 |
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ESP 400 Roll Unwind Processor – ENERGY SAVING PRODUCTS $8,500.00 |
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Synology RS3411RPxs 20TB(10x2000G) Seagate Power Saving $8,442.00 |
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Russia Russian Alexander II For Saving Fatalities 1855 $8,300.00 |
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Thecus N12000 24TB (12 x 2000GB) Seagate Power Saving $8,200.00 |
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Thecus N16000 16TB (8 x 2000GB) Seagate Power Saving $8,150.00 |
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Energy Savings Products ESP 300 Rewinder $8,000.00 |
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Toyota : Camry FUEL SAVING HYBRID***40 MPG***TOYOTA CAMRY ONE OWNER EXCELLENT CONDITION $8,000.00 |
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ESP 300 Rewinder – ENERGY SAVING PRODUCTS $7,700.00 |
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Husqvarna P-ZT 6126 Zero Turn Lawn Mower CALL FOR INSTANT SAVINGS $$SAVE$$ $7,499.99 |
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QNAP TS-1279U-RP 24TB (12 x 2000GB) Seagate Power Saving $7,325.00 |
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Synology RS3411RPxs 10TB(5x2000GB) Seagate Power Saving $7,199.00 |
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5-user QuickBooks Point of Sale POS 10.0 Pro SW + HW – MAKE OFFER/GET SAVINGS!!! $7,119.80 |
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EPSON 11880 64″ Printer- BIG savings from Epson Pro’s $6,995.00 |
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Synology RS3411RPxs 8TB(4x2000GB) Seagate Power Saving $6,949.00 |
