If i deposit ten thousand dollars in to my acct how much taxes to i have to pay to the irs?

Question

my boy friends grand father die and the will says to leave him 10,000.00 he got it deposit it in the bank but before he spends it he wants to konw if he has to pay taxes on it

Answer 1

Since it was an inheritance, he doesn't pay federal income tax on it.  Depending on his state, it's possible that he owes a state inheritance tax on it.

Answer 2

How much tax you have to pay has nothing to do with how much money you deposit into a bank account. The tax you pay to the IRS is called *income* tax because it is a tax on the income you make -- money that you earn through employment or other means. If you earned that $10,000 on a job, you will have to pay taxes on it based on the W-2 that your employer gives you at the end of the year.

If you keep all $10,000 in a savings account, you will undoubtedly earn some interest on it. At the end of the year the bank will give you a form telling how much interest your money has earned for you during the year, and you *will* need to include that interest amount as part of your income when you pay your income taxes.

Answer 3

that's an inheritance and is not taxable by the IRS

the state may tax it, but US has basically abolished the US inheritance tax

Answer 4

What type of account?

Edit:  Since it is an inheritance and 10,000 dollars he won't have to pay any Fed taxes, as others now have said there may be state taxes on the amount so you'll have to check with the state.

Just depositing that amount into the bank it won't be taxed.

Answer 5

You don't pay taxes for depositing money in to a bank account.  How did you obtain this money?

Answer 6

There is not enough information to tell you for certain.  It depends on where you got your money - and how much total income you have for the year.

If you get $10,000 as a gift from a long lost uncle, you do not owe taxes.  It is a gift.  If you earn interest from the bank account, then you will have to report the interest as income and pay tax on that.  The same would apply if you earned money from an employer and every week stashed $100 under your mattress and when it reached $10,000 you decided to put it in the bank...

If you earn $10,000 from a business venture, then you subtract your expenses to get your net income.  You add that net income to your other income (pay, interest, stock sales) then subtract your deductions to calculate your taxable income.  Your tax is based on that amount and can vary from 10% to 35%.  The higher your taxable income, the higher your tax rate.  You will also have to pay 15.3% self-employment taxes, plus state and local taxes if they apply.

If you stole the money or earn $10,000 selling drugs, you would report that money just like you would for a business venture on your Schedule C.

Answer 7

You never pay taxes simply for depositing money no matter how much money it is.  If the money comes from an illegal source of funds and you make a lot of large cash deposits with no apparent means it may trigger a government investigation however.