Does the Government tax interest on savings accounts?

Question

Does the Government tax interest on savings accounts?

Answer 1

Yes, only exception is nonresidents exempt from residency like F1 visa holders.

Answer 2

Yes; unless it is classed as tax exempt interest.

Answer 3

Yes, you are required to report interest on savings account just like all other sources of income.

Answer 4

Unfortunately they do plus the state as well.  Personally, I wish they wouldn't because it would give people another incentive to save their money.

Answer 5

The government will tax interest on savings accounts.  Don't think you can avoid it too because the bank will report to the government how much interest you earned and the IRS might audit you if you don't claim the interest as income on your taxes.

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Answer 6

Yes, interest is taxable income.

Answer 7

Yes they do.