if you have $20000 in your savings account this year and it increases to $25000 next...

if you have $20000 in your savings account this year and it increases to $25000 next year, to what amount does the marginal tax rate apply

Expert Solution

Answer : In case of Saving Account , Interest on Saving Account will be taxable at marginal tax rate as applicable .Principal Amount is not taxable. In this case as the amount increased from 20000 to 25000 , marginal tax rate applies to the interest amount of 5000 only.

jeff jeffy answered 2 years ago

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if you have $20000 in your savings account this year and it increases to $25000 next...

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