Sansa opened a savings account in 2020 anddeposited $8,000. She received $200 ofinterest on the account in 2021, but did notwithdraw the money. What year does Sansainclude the interest income on her tax return?a. Interest income is never taxable.b. 2020, the year she deposited the money.c. 2021, the year she earned the interest.d. She does not pay tax on the interest until shewithdraws the money.

As per Income Tax laws If interest earned upto 10,000 from saving bank account than you can claim…

Answered: withdraw the money. What year does…

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withdraw the money. What year does Sansa include the interest income on her tax return?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter9: Individuals As Taxpayers

Section: Chapter Questions

Problem 29P

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Question

Sansa opened a savings account in 2020 and
deposited $8,000. She received $200 of
interest on the account in 2021, but did not
withdraw the money. What year does Sansa
include the interest income on her tax return?
a. Interest income is never taxable.
b. 2020, the year she deposited the money.
c. 2021, the year she earned the interest.
d. She does not pay tax on the interest until she
withdraws the money.

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