i see well this really helps me, i really appreciate this thanx

On Oct 17, 4:25 pm, "Mark Freeland" <BnetOne...[at]sbcglobal.net> wrote:
- quote -

oh yeah.
nj and 40K and the interest the bank is giving out is 5.16% rate not
apy. im planning on investing for 3months, you know, trial [at] 1st and
see how things will turn out. experience experience. thanx and i
appreciate your help and time, really.

On Oct 18, 4:59 am, "catalpa" <cata...[at]entertab.org> wrote:
- quote -

<pfecik[at]gmail.com> wrote in message
news:1161102357.533076.101090[at]i42g2000cwa.googlegroups.com...
- quote -

Basic state income tax rates for all states are at
www.taxfoundation.org/taxdata/show/228.html and
www.taxadmin.org/FTA/rate/ind_inc.html . Some states, such as Tennessee,
have very specific rules on what federally taxable interest income is state
taxable or free from tax. If you are talking about a large investment amount
and interest income, you may be required to make quarterly estimated tax
payments to the IRS and your state revenue dept.

It would be easier for all to answer your questions if you specified your
state and ballpark investment amount.

<pfecik[at]gmail.com> wrote in message
news:1161102357.533076.101090[at]i42g2000cwa.googlegroups.com...
- quote -

Most tax filers owe taxes as cash is received. So, if your CD pays no
interest until next year (as many short term CDs do), then you'll owe
nothing this year (no interest), but you will owe taxes on the full amount
of interest next year. Longer CDs pay interest periodically, and you'll owe
taxes on interest in the year it is credited.

For example, here's Citibank's description of its CDs:
https://web.da-us.citibank.com/cgi-b...p?BS_Id=SvgCDs
" Interest can be paid monthly to your CD, checking or savings. For CDs with
terms of one year or less, interest can be deferred until maturity or
credited to your CD each month."

CD interest is like any other ordinary income. It gets added to ther rest
of your ordinary income (e.g. wages). So, the more ordinary income you have
(other than the CD), the more tax you'll pay on the CD (assuming your
state's tax rates increase with amount of ordinary income). Without knowing
the total amount of ordinary income, it is often impossible to tell how much
tax you'll pay on each extra dollar of CD interest.

If you are already in the top tax bracket for your state, then that is the
rate of tax you'll pay on the CD interest.

Mark Freeland
BnetOnewsX[at]sbcglobal.net

hi,
im thinking about doing some simple investing. cd's. my question is
does one hae to pay taxes on it and if so when. + how do i find out
what the tax rate is for my state and investment amount?
thanx