Since a Income Tax comes from a person's Income they make or they are paid how often is a

[aid632007]

Since a Income Tax comes from a person's Income they make or they are paid how often is a tax on savings paid is it every year ?

 

[Acala]

Savings are not taxed. Interest on savings is taxed. If you make over a certain amount of it, you must pay quarterly. Otherwise, annually.

 

[VBRonPaulFan]

Savings for what? If you want to get into specifics for this kind of thing... you need to look into the tax code for the government you're interested in.

In the united states, income includes wages, interest on savings, dividends on investments, self-employed income, gains from bartering and stock sales, rental income, etc.

However, there are specific ways you can *save* income so it gets excluded from income, such as an MSA/HSA/ESA, etc. This question can really be vastly different depending on which country you are asking it about.

 

[bwlibertyman]

http://www.ehow.com/about_5260819_tax-rate-interest-income_.html

Yeah, looks like interest is taxed. Interest on government bonds are not taxed. They obviously want the competitive advantage.

 

[VBRonPaulFan]

http://www.ehow.com/about_5260819_tax-rate-interest-income_.html

Yeah, looks like interest is taxed. Interest on government bonds are not taxed. They obviously want the competitive advantage.

Government bonds aren't taxed because you pay a tax on the gain when you actually sell the bond. The bank you cash the savings bonds out with have to file official paperwork and you get a 1099 reported on the gains.

 

[Sola_Fide]

Wut

 

[gerryb]

Savings are taxed constantly, as the Federal Reserve increases the money supply, the value of existing dollars decreases. A hidden tax on all savings accounts.

 

[bwlibertyman]

Government bonds aren't taxed because you pay a tax on the gain when you actually sell the bond. The bank you cash the savings bonds out with have to file official paperwork and you get a 1099 reported on the gains.

You are correct. It looks like the only non interest investments people can make are savings bonds for kids to pay for their schooling or municipal bonds that are used to fund essential services of the government.

 

[LibForestPaul]

Since a Income Tax comes from a person's Income they make or they are paid how often is a tax on savings paid is it every year ?

Do you mean the payroll tax?

 

[VBRonPaulFan]

You are correct. It looks like the only non interest investments people can make are savings bonds for kids to pay for their schooling or municipal bonds that are used to fund essential services of the government.

Yeah, unrealized gains don't get taxed in our tax structure. You don't take the hit until you actually realize the gain from the sale of an asset/stock/whatever. You pay taxes on interest from savings accounts/dividends because you actually get a yearly check... so it is considered income. The 'interest' you get from a savings bond/t-bill/whatever doesn't get paid to you but rolled into the asset price of the bond itself. You don't get that cash until you actually sell it.

Then you have ways of excluding certain income from being considered income. The way to do that is via HSA/MSA/ESA type plans.

 

[VBRonPaulFan]

Do you mean the payroll tax?

No, this guy is super confused (but you sort of answered part of it). The US tax system is a 'pay as you go system' based on 4 quarters. If you work a W-2 type job, the employer is required to withhold your estimated tax payments automatically and remit them to the government for you (this is why you fill out a w-4 when you start a job). If you're self-employed or a property owner who rents, you're expected to make estimated payments based on what you think your income is going to be.