Taxes
High-Yield Savings Accounts Slam Americans With Larger Tax Bills
Goldman’s Marcus and others raised the yield for savers as the Federal Reserve hiked interest rates. Now, the tax bills are coming due.
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Savers who took advantage of the high interest rates being offered by high-yield savings accounts and certificates of deposit last year are waking up to a larger tax bill from Uncle Sam.
With US taxes due April 15, many taxpayers are facing a higher income-tax liability from the interest they earned through these accounts, potentially reducing their tax refund or even pushing them into a higher tax bracket.