oh man it's all messed up...taxes

[ohgirlohboyohno]

UGH...I got a letter a couple months ago that something was wrong with 2 of the kids savings accounts (all have been open and active for several years)

I got to looking at the letter and the problem was someone (DH probably) got the kids SSN wrong (transposed numbers)

So, I took their SS cards and the letters into the bank branch...she scanned them and sent them off to the "big office"

Then a couple weeks later I wa sin the bank and one of the guys said they got an email that they needed something from Social Security for the kids....I figured that the SS cards was all they needed, he said "no I think they need some sort of print out"...I didn't think much about it cause I figured the bank would send me something "official" if they really needed mmore inf (and I really thought that me going in and him getting the email just crossed paths).

I never got anything else form the bank.

Today I got 1099 forms from the bank (I think that's what they are)....and the 2 kids with the messed up SSN have "federal tax witholding" taken out of their savings accounts. AND the SSN on those tax forms are STILL wrong.

How we going to fix this? Can we just not file anything for them (since the #s are wrong anyway?)

I can't believe the bank wouldn't send me something telling me exactly what I needed to get them and just rely on email the branch. UGH!

[Rdesonia]

Are you sure they had money removed? Normally you get a 1099 for the interest that you were paid by the bank.
I would call the bank because normally if an account is going to be garnished by the IRS you would have received advanced notice.

[ohgirlohboyohno]

Yeah I looked online and the $$ was taken out of the accounts that had the messed up SSNs ...but not the other account.

The interest was around $40 and the interest was $10

The only notice I received was the letter that something was wrong with the accounts and to reply by December (which I did) IT never said what the problem was or anything just to contact the bank with their information...which I did, I brought in their original SSN cards.

Do ALL savings aco**** normally have tax witholding? I thought since they are kids and not working and not "making" very much in there that they don't need to file taxes???

UGH this is so confusing...

[Rdesonia]

Originally Posted by ohgirlohboyohno Yeah I looked online and the $$ was taken out of the accounts that had the messed up SSNs ...but not the other account. The interest was around $40 and the interest was $10 The only notice I received was the letter that something was wrong with the accounts and to reply by December (which I did) IT never said what the problem was or anything just to contact the bank with their information...which I did, I brought in their original SSN cards. Do ALL savings aco**** normally have tax witholding? I thought since they are kids and not working and not "making" very much in there that they don't need to file taxes??? UGH this is so confusing...

I've never had $ taken out of a savings account for taxes. I have gotten 1099 and just filed them with my taxes. I *believe* if it is a child's account you don't have to pay tax on the interest because children or anyone that makes less than a certain amount (not sure the exact # but over $3000) is not required to file.

[PoshPants]

I have withholding tax taken out when they pay me interest, it's really an insult given how little I get!

[PoshPants]

Originally Posted by Rdesonia I've never had $ taken out of a savings account for taxes. I have gotten 1099 and just filed them with my taxes. I *believe* if it is a child's account you don't have to pay tax on the interest because children or anyone that makes less than a certain amount (not sure the exact # but over $3000) is not required to file.

I never had it happen either, but I do on this new account, maybe it's a new obama thing?

[abunchoflemons]

i havent had issues but kids accounts not on my taxes as they are minors. i would have branch manager call vith u there to figure out.maybe close & reopen with right info?