I would like to open a Savings account for my 3 month old Son. Are their tax implications on interest earned? - emigrant savings
I would like to open a Bank of America in connection with me, but have a high interest account (direct migrants linked), so that he could make 5% of their savings. This leads to a 529 is open for him, but donations to his person, would be the savings account to fund regardless of their training. You'll pay tax on interest made over the years?
Friday, January 8, 2010
Emigrant Savings I Would Like To Open A Savings Account For My 3 Month Old Son. Are Their Tax Implications On Interest Earned?
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4 comments:
Regardless of age, if your income is below $ 800, you owe federal taxes on income and not to submit a tax return (I am adopting your 3 months old is not running) their own business.
If your child is under 14 years, more than 800 of unearned income (interest, dividends, capital gains, etc.) is the next installment of 800 to earn taxed at 10%. You can make a tax return for them, or give their unearned income on your tax return (unless your child) to pay more than $ 8,000 of interest. The form is used to 8814th Check the attached links for more information.
In summary, the first $ 800 is tax free and taxes the next tranche of 800 to 10%.
Warning: This information is federal tax for the year 2005 only. I do not know if it has changed for 2006, even as their state taxes interest, because no state has given us. If it Pennsylvania, for example, your child will pay tax when the interest was more than $ 32.
In addition:
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I just read in September 13, 2006, the Wall Street Journal for the year 2006, the IRS changed the$ 800 to $ 850 and change the age of "under 14" to "under 18".
only when the product becomes a sum of several thousand dollars or more
I'm not sure. This may be specific to the state, but I think there are no fees for savings accounts tied to the mother of Junior. You could ask a bank or a government official. If not wait, simply to further replies. If you ask an employee, be sure to mention all the details, including his son has grown up and sell your account attached. In addition, you can begin to be taxed if he would to an adult, or they can use your account tax, because it junior.
Skip and Judy are both correct. The following link is IRS Publication 929, Tax Rules for Children and relatives. Addresses these issues in detail.
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