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About Taxes on Deposits

I was wondering how much money you can deposit a year without paying taxes. This money would be pre-taxed coming from the same source all year.

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Deposits are not taxed at the federal level, and states do not tax deposits, either. It is generally income that is taxed, and it's a general rule that it's only taxed when first received by the taxpayer, not when it's moved from account to account. For a definitive answer that takes into account the exact nature of the deposits you are asking about, you should contact a qualified tax adviser.

Published on BankingQuestions.com 3/23/09