Do I have to disclose my savings when I file for taxes and do I have to pay tax on my savings?
Baltimore, MD |
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.
I agree with Attorney Durr, but if you have withdrawn retirement monies from a retirement account and are referring to those monies as "savings," then they are taxable.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.
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