Do I have to pay taxes on Interest income?

[sogwap]

What is the name of your state? Florida
Do I have to pay taxes on interest income earned if I did not have ANY other source of income? Do I have to file a tax return?

It's been a long hard year and I sold a condo (my dad died), put the money in the bank, and have been living off of that while seeking a permanent place to settle. The interest it earned is the only income I've had......the entire year.

 

[TinkerBelleLuvr]

It depends on how much interest you earned.

Start here:
http://www.irs.gov/publications/p501/ar02.html#d0e461

 

[LdiJ]

What is the name of your state? Florida
Do I have to pay taxes on interest income earned if I did not have ANY other source of income? Do I have to file a tax return?

It's been a long hard year and I sold a condo (my dad died), put the money in the bank, and have been living off of that while seeking a permanent place to settle. The interest it earned is the only income I've had......the entire year.

Yes, interest is taxable income. However, if the interest is your only income, and its less than about 8500.00, then you are not required to file a tax return. Sometimes however, its just wiser to go ahead and file one, just to fully establish that you do not have any tax due.

 

[jamesac]

Interst income is taxable

http://www.irs.gov/publications/p501/ar02.html#d0e461
Ginny is right, the above is a good resource

just remember that interest is "unearned income" different thatn "earned income" which would be wages. For a single taxpayer if all you had was interest then you only have to file if interest received was over $2150.

 

[sogwap]

Yes I see and I've had two amounts posted. I will have to go to the IRS site posted and check. Thanks!!

It depends on how much interest you earned.

Start here:
http://www.irs.gov/publications/p501/ar02.html#d0e461

 

[sogwap]

I will check on the site. Thanks for your reply!!

http://www.irs.gov/publications/p501/ar02.html#d0e461
Ginny is right, the above is a good resource

just remember that interest is "unearned income" different thatn "earned income" which would be wages. For a single taxpayer if all you had was interest then you only have to file if interest received was over $2150.

 

[sogwap]

I'm praying you're right, but I will check on the IRS site. Thanks for your help. Filing can't hurt. I agree with that for sure.

Yes, interest is taxable income. However, if the interest is your only income, and its less than about 8500.00, then you are not required to file a tax return. Sometimes however, its just wiser to go ahead and file one, just to fully establish that you do not have any tax due.

 

[LdiJ]

I'm praying you're right, but I will check on the IRS site. Thanks for your help. Filing can't hurt. I agree with that for sure.

It really doesn't matter who is right. If you are under about 8500.00 you aren't going to owe any tax, and you really should go ahead and file, just to formally establish that. You don't have to pay anyone to prepare your taxes, you can simply do it yourself and file a paper return.