Sunday, December 4, 2011

How much cash can you put into the bank each month before you start getting taxed on it?

I recently began dating someone who sends me 2 thousand dollars in cash each week to help pay for bills and expenses. I would like to put this money into my savings account, but am unsure if this is legal. Is this legal, or is there a better option i'm not considering? I would not like to have large amounts of cash sitting around, and would prefer it to be in the bank. If I put it into the bank, will I be taxed on this? And if so, after how much money deposited will I be taxed?|||$2,000 a week, in cash? There is something going on that you are not telling us. Anyway, there is no tax on gifts, though he will have to look at gift tax at his end. The bank might start asking questions as this raises money laundering questions.|||why would this be illegal? whoever's name is on the account will just

have to claim the interest you make if any on your tax return. if the money is only going to be in the account long enough to pay bills

interest won't be much of an issue. if she's giving it to you to pay

your bills you will probably have to claim it as income on your taxes.

you could check into that.|||No limit to gifts received. |||As long as no services are rendered, this is a gift and not taxable to you.

Helen, EA in PA|||You don't get taxed on the money you put into the bank, you get taxed on the interest that money earns. You'll get a 1099 form from the bank at the end of the year showing the total amount of interest they've paid you, and you will have to include that interest along with all your other income when you pay your taxes.

The more immediate concern is how to account for that $2000 a week you're getting. Is this just a one-time gift of a couple of thousand, or will you be getting it on a weekly basis? Is it a gift or a loan? Are you signing any documents related to paying back this money? And what the heck kind of "bills and expenses" can you have that require that much cash every week? Do you work a regular job with regular income as well?

I suspect you're trying to cover up something here -- and I further suspect that the source of all that cash might not be exactly legal. If so, I wish you luck avoiding trouble because of it -- but this is not the place to come for accurate advice.|||You'll get caught if you don't write it down as income on your tax return.

There are several ways of getting around paying taxes on it.

When you file your taxes, ask your accountant which would be suit you.

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