7 Things You Should Know If You Deposit More Than $10K Into Your Checking Account

www.gobankingrates.com ^ | 02 April 2024 | Angela Mae

[BBB333]

We deposit rents of about $18,000 each month - two tenants pay with cash (a total of over $5,000).

The deposits are always on several deposit slips due to the checks/cash coming in on several days...

No problems for many years. We do have a very good local bank.

[RainMan]

It should be a lot more. Anyone making $150K/year being paid monthly would automatically have every paycheck be flagged.

[Highest Authority]

The law says that you are a criminal, until you prove that you are not!

[logi_cal869]

“Loose lips...”

[9YearLurker]

You could grease my palms to seal my lips.

[Faith65]

*

[EVO X]

Verify with your bank that you can deposit $10,000 or more into your account. “Depending on your bank and the specific amount you have, you may be charged fees or penalties for making large deposits,

Banks will put up roadblocks for big withdrawals, but I have never heard of banks charging to deposit money.

[Reynoldo]

It should be a lot more. Anyone making $150K/year being paid monthly would automatically have every paycheck be flagged.

If they are being paid in and depositing CASH.

[Bob434]

thanks- i don’t fall into that category, so im not too up on these things-

[Bob434]

Thanks-

[daniel1212]

Then there is this:

IRS Delays Requiring Users of Venmo And Other Payment Apps To Report Transactions Over $600

App users are currently required to report payments if they’re in the tens of thousands of dollars, and if numerous transactions are completed during the year. A 2021 law called for tightening the rules by having the apps send users what’s called a Form 1099-K for transactions totaling over $600 for payment of goods and services.

But the IRS announced late in 2022 that it would delay the new requirements until the 2024 tax filing season. And now, the tax agency says it will wait until 2025—and ease into the new changes by lowering the reporting threshold from $20,000 to $5,000 during a transitional stage...

The new law will eventually require users to receive Form 1099-K for any payments of goods and services over $600, regardless of the number of transactions. That means more people will receive the forms. - https://www.forbes.com/advisor/taxes/cash-apps-to-report-payments-of-600-or-more/

[Svartalfiar]

2 questions- 1 what about millionaires? They are only covered up to $250,000 against bank failure?

2: Millionaires routinely deposit and remove large amounts- Are they scrutinized all the time? a $10,000 deposit is chickenfeed to them- surely there are banks that allow more spending on income levels?

1) Correct. But that limit is per account, or per person per type of account per institution(?), or something like that. So breaking your money across different accounts at different banks means you get millions of free insurance, not just $250M. Plus, most millionaires don't just sit on a bunch of cash at the local bank. Their money is tied up in businesses or real estate or investment accounts or etc. Most low-level millionaires probably couldn't make a cash payment of $250M without a couple days notice to liquidate.

As others have mentioned, these laws are mainly cash only. Millionaires aren't regularly running cash unless it's drug money, or something similar. Getting that much cash on a consistent basis, for an individual, is very difficult, unless you're running a decent small business under your own name (not a good idea, but that's not really part of this). Most consistent cash transactions of this size are businesses, and their consistent history, plus business-related actions, mean these laws don't matter much.

[Bob434]

thank you for the explanation-