How much cash can I deposit into a bank account and how often without it being reported?

I'm a dancer so I get paid of course in cash and I was wondering how much cash I can deposit without it being reported. I heard 10K but can I only deposit that much and then never be able to deposit cash again and not have it reported?

Best Answer:

Ellison: Transactions above $10,000 in cash get reported to the IRS.

The IRS doesn't look into it further unless you are doing them twice a week.

I suspect you have a few years to go before you get your hand on $10,000. Even then, you could use a check and they don't get reported.

I have probably been reported a half dozen times over the last 20 years. Ive never worried about it and never will. Because its MY money and Im not doing anything illegal. Im not a terrorist, a drug dealer or a tax cheat. Its not up to me to prove it. they have to prove it.

Also, its not just $10k, it can be any series of transactions that look like they might be intended to thwart the filing. Like $9900 or $8000 a day for a week or whatever.
Even cash deposited to your bank account.

Other answer:

It sounds as though you're referring to the rule that financial institutions must report transactions over $10,000 to the federal government. This is to discourage money laundering via large transfers of cash. Find out the rules by calling up one of your local banks. If you don't completely understand the answers, call another bank for additional information.

In general, I believe you can deposit amounts under the reporting ceiling at any time. The account will earn interest, of course, and that interest will be automatically reported to the IRS. You'll get a form called a 1099-INT soon after January 31st showing the amount. You must report this on your income tax return, since the IRS will match your return to their records.

If there's a huge discrepancy between the amount you report as income versus the amount you receive in interest, the Feds might wonder why. One way around this would be to put some of your money into US Savings Bonds (there are several types). They earn decent interest, but you don't have to declare the interest until you cash them in, some years in the future. Then, of course, you have to pay tax on all the accumulated interest, but by then your situation may be entirely changed.

You can buy US Savings Bonds through most banks. They will explain all about savings bonds and the rules about cashing them in (there's a waiting period). I believe the interest is credited every three months, so you want to be careful about when you cash them in. You could lose three months' interest if you cashed them in a day too soon.

Web search "suspicious activity report". It does not necessarily have to be $10k. A series of smaller cash deposits will also raise suspicion. So if you are trying to avoid income tax you will need to keep the money under your mattress and never spend it for anything expensive.
Moon Man:

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