Am I subject to IRA interest tax on the interest my IRA earns, or am I only subject to IRA interest tax if I take an IRA distribution?
You aren’t subject to IRA interest tax on the interest your IRA earns while it remains in your account. Instead, you’ll be responsible for any IRA interest tax when you take distributions from the traditional IRA.
If you have Roth IRA distributions, they’re tax-free if both of these are true:
- You held the account for five years.
- You take the distribution for one of these reasons:
- Over age 59 1/2
- Death or disability
- Using the distribution as a qualified first-time homebuyer (up to a $10,000 lifetime limit)
Is the money you received considered a gift or inheritance? Learn more from the tax experts at H&R Block.
What are stock splits? Learn more about stock splits and their cost basis from the tax experts at H&R Block.
The minimum income amount depends on your filing status and age. In 2017 for example, the minimum for single filing status if under age 65 is $10,400. If your income is below that threshold, you generally do not need to file a federal tax return. Review our full list for other filing statuses and ages.
If you are selling items at a farmer's market, learn how to file your taxes with H&R Block. From cash income to bartering, these tax tips will help.