I am trying to refinance my home and I have been saving. Do I have to disclose all my bank savings when I file for taxes? If I do, do I have to pay taxes on my savings or only on the interest earned from my savings?
You do not report account balances to the government (unless you hold accounts over 10,000 in foreign countries), you only report your taxable income. Interest earned on savings is generally taxable income and you pay tax on that income.
2 lawyers agree
Guardianship Law Attorney
I agree with Attorney Durr, but if you have withdrawn retirement monies from a retirement account and are referring to those monies as "savings," then they are taxable. I urge you to speak with a CPA about completing your taxes. It is money well spent.
This response is not intended to create an attorney client relationship. The response is solely intended to answer the question presented. Additional facts and issues are unknown to the responding attorney. Should you still have questions, legal assistance should be sought by making an appointment to meet with an attorney, rather than attempting to resolve the issue via e mail. This response is merely provided to give direction to assist you in the decision of whether you should contact an attorney or not.