Q: do i pay taxes on the money i get back from find my money. It was from a bank the folded
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A:
When you recover money from a failed bank through programs like "Find My Money," it usually isn't considered taxable income. This is because the money was already yours to begin with—it was just being held by the bank before it closed. The government or an agency is simply helping you reclaim what was lost, not giving you new earnings.
However, if the money includes interest or dividends that were earned before the bank failed, that portion could be taxable. If that's the case, you might receive a tax form, such as a 1099-INT, showing the taxable amount. It's important to check any paperwork that comes with the recovered funds to see if there’s any mention of taxable earnings.
If you're unsure whether any part of the money is taxable, reviewing past tax returns or financial records could help. You could also look at IRS guidelines on unclaimed funds to get more clarity. It's always good to keep documentation in case any questions come up later.
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