Do I have to pay tax on a saving account interest?

What if I never remove money from the account or add money to the account. This would mean I am paying tax on almost the same amount of money each and every year. What is good is the interest if it taxed up. also If I had bought something collectable instead and then sold it for profit I would have paid no tax.
Do I have to pay tax on a saving account interest?
Yes, savings account interest is taxable income. How much it's taxed depends on how much other income you have. It doesn't matter how much you deposit or withdraw during the year. Only the interest earned is taxed (not the actual balance in the account).





Lots of luck buying collectibles. It may take years for them to go up in value - if they go up at all. Also, they're not necessarily easy to sell at a good price if you're in a hurry for the cash. If you're really looking to make money and reduce your tax bill, don't buy collectibles - buy mutual funds.
Reply:In the US ... yes.


You should get a 1099 form from your bank.


It is silly, but the interest won't make a signifigant difference in your AGI.
Reply:The tax rate on collectibles is your ordinary tax rate, max of 28%.





The tax rate on your savings account is at most 35%. You act like it's 100%.
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