Do you have to pay interest on a savings account for a minor if your self employed?
June 21, 2007 by admin
Filed under Questions and Answers
Don H asked:
I’m self employed and want to open a savings account for my 1 year old daughter. Money from family and friends she has received for gifts. I have to be on the account as well because she is a minor. Will I have to pay taxes on her money if my name is on the account?
Website content
I’m self employed and want to open a savings account for my 1 year old daughter. Money from family and friends she has received for gifts. I have to be on the account as well because she is a minor. Will I have to pay taxes on her money if my name is on the account?
Website content
soooyahh on Fri, 22nd Jun 2007 2:48 pm
ask the bank
grr....no! on Mon, 25th Jun 2007 10:11 pm
no on the contrary you should be getting interest into ur savings like .5% a month or so..
Just2BMe on Wed, 27th Jun 2007 10:17 pm
Dependents (children) can have taxable income. Seek the advise of a tax accountant so that they can fully understand the situation and the magnitude of the amount of money. Details I would not feel comfortable sharing online.
Judy on Wed, 27th Jun 2007 10:55 pm
Put her social security number on the account. Then unless the interest is quite substantial, you won’t have to do anything with it even if your name is also on the account.
rakesh s on Thu, 28th Jun 2007 7:06 pm
Hi Sir,
It is quite good you are thinking from tax planning veiw. OPENING AN ACCOUNT OF YOUR MINOR CHILD.
Banks normally charging certain charges for the annual maintanance and opening and there is no such interst charges from the bank.
Don’t worry about the same and be happy with openong your childs saving account.
You can very well plan your income from doing such practice.
Thanking You
Regards
Rocky