What amount of my money is the government aware of?
Obviously they cant see the physical cash I have, but what cash can they see? Money in my checking, savings, Robinhood, Venmo, PayPal, online banking etc... what exactly can they see on what to tax me on of course.
- SumDudeLv 71 month ago
wages, interest earned, dividends, large gambling winnings ... go to irs.gov
- StephenWeinsteinLv 71 month ago
They don't tax you on the amount that you have. They tax you on the amount that you make.
Robinhood would be required to report your dividends and capital gains to them, and you are taxed on that income.
- fcas80Lv 71 month ago
You are taxed on income, not on assets. If you are earning interest on an account, the bank or other organization reports that to the government.
You are taxed on profits. If you buy stock for $100 and sell it for $125, the $25 is profit and you are taxed on that. The brokerage account organization reports that to the government.
If you buy a lamp for $100 and sell it for $125 and have the money go to Paypal, that $25 is profit and taxable, but Paypal does not know how much of the $125 is profit, so Paypal is not reporting this to the government.
- Anonymous1 month ago
They are aware of what financial institutions, employers and customers report to them. Reporting requirements vary depending on the type and amounts of transactions.
All interest that is paid to you is reported to the IRS on forms 1099-INT. All stock sale proceeds are also reported to the IRS. All income from employment is reported. Income from self-employment may be reported by your customers.
Generally speaking, taxes are not assessed on bank account balances. Taxes are assessed on income, capital gains, interest, dividends, rental income, etc.
It's difficult to answer your question because you've really given zero information about your situation. How would we know what is being reported to the government when we know nothing about what kind of transactions you are performing, what the source of the money is, etc.
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- Anonymous1 month ago
The government does not care about your miniscule amounts. The government cares about repeated CASH deposits of $10,000 or more.
I transfer 6 figures all the time. The government could not care less.