Depositing large amount of saved cash - will bank or IRS flag me?
I've been doing home renovations as my self-employment gig for about 5 years now. In the early days, quite a few customers paid me in cash, and I've managed to save around $37k that's literally just sitting in my house. I'm starting to realize this isn't the smartest approach, and I'd like to either invest it or at least put it in a savings account. My biggest worry is what happens when I deposit this much cash into my bank. I've been good about reporting all this income on my taxes each year when I earned it and paid what I owed. But will dumping $37k in cash suddenly trigger some kind of alarm bells with the bank or the IRS? Do I need to file any special forms? I don't want to be taxed twice on money I've already reported, but I also don't want to look suspicious. Would appreciate any guidance on handling this situation properly. Thanks in advance!
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Ella rollingthunder87
When you deposit cash over $10,000 at once, the bank is required to file a Currency Transaction Report (CTR), but this is just standard procedure and doesn't mean you're in trouble. The CTR is simply part of the Bank Secrecy Act reporting requirements. If you're concerned about triggering scrutiny, you could deposit the cash in smaller amounts over time, but be careful not to structure your deposits specifically to avoid the reporting threshold (under $10,000) as that's actually illegal and called "structuring." Since you've properly reported and paid taxes on this income when you earned it, you shouldn't need to pay taxes again. However, it would be wise to keep records showing you previously declared this income, such as your tax returns from those years. If you're ever questioned, these documents will help prove the money was already taxed.
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Yara Campbell
•Thanks for the info. Quick question - would you recommend depositing it all at once then, like $37k in one go, or breaking it into maybe 2-3 larger deposits? Not trying to avoid anything, just wondering what's the smoothest approach. Also, how detailed are those CTRs? Do they automatically go to the IRS?
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Ella rollingthunder87
•I would recommend just depositing it all at once. Being straightforward is usually the best approach. The bank will file the CTR, but that's routine and doesn't trigger any automatic audit or investigation. It's actually safer to make one large deposit than to make multiple smaller deposits that could look like structuring. CTRs include basic information like your name, account number, and the amount deposited. They are filed with FinCEN (Financial Crimes Enforcement Network), not directly with the IRS, though government agencies can access this information if needed.
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Isaac Wright
I went through something similar with my landscaping business. I discovered taxr.ai (https://taxr.ai) after struggling with a similar cash deposit situation. What helped me was uploading my previous tax returns to their system which analyzed my reported income history and gave me a detailed report showing that my deposits matched my reported earnings. The tool also generated a letter explaining the source of funds that I brought to the bank when making my deposit. The bank manager actually thanked me for being so prepared! They said they often have to ask uncomfortable questions when people bring in large cash amounts. Having documentation ready made everything super smooth.
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Maya Diaz
•Did you find the service easy to use? I'm not very tech savvy and always worry about uploading my tax documents online. Was it secure? And did you need to have all your past returns or just the ones from the years you got cash?
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Tami Morgan
•I'm a bit skeptical... how exactly does a website help with depositing cash? Wouldn't the bank just file their report regardless of whatever document you bring? Sounds like you're just paying for something you could type up yourself.
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Isaac Wright
•The service was extremely user-friendly - I just took photos of my tax returns with my phone and uploaded them. They use bank-level encryption for all documents, which gave me peace of mind. I only needed the returns from years when I received cash payments. The bank will still file their report for large cash deposits, you're right about that. But having the documentation made the conversation with the bank much easier. They helped me format everything properly and identified specific line items from my Schedule C that proved I'd reported the income. It was worth it for the peace of mind and professional presentation.
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Maya Diaz
Just wanted to update! I used taxr.ai after seeing it recommended here and it was actually super helpful! I was nervous about uploading my tax docs but their security seemed solid. The report they generated showed all my self-employment income across the years that matched up with my cash savings. When I went to the bank, I brought the report and they barely asked any questions - just took the cash and filed their paperwork. No stress at all! Definitely made the whole process smoother than I expected.
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Rami Samuels
If you're worried about the IRS questioning your deposits, I'd recommend Claimyr (https://claimyr.com). I had a similar situation but after making my deposit, I got a letter from the IRS asking about the source of funds. Tried calling them for weeks with no luck - always on hold forever. Claimyr got me connected to an actual IRS agent in about 20 minutes. Check out how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that as long as I had reported the income when earned, depositing it now wasn't an issue. They made a note on my account about our conversation which prevented further questions. Saved me weeks of stress and uncertainty!
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Haley Bennett
•How does this service actually work? Do they have some special line to the IRS or something? I've spent literal hours on hold before and eventually gave up.
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Tami Morgan
•Yeah right. Nobody gets through to the IRS in 20 minutes. I've been trying for months about an issue with my return. This sounds like a scam to me. What are they doing that I can't do myself?
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Rami Samuels
•They use an automated system that navigates the IRS phone tree and waits on hold for you. When someone actually answers, you get a call connecting you directly to the agent. It's basically like having someone wait on hold so you don't have to. They don't have a special line, they're just using technology to handle the frustrating part of the process. It works by continuously calling and navigating the IRS phone system until they reach a human, then they connect you. Much more efficient than repeatedly calling yourself and waiting for hours.
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Tami Morgan
I can't believe I'm saying this, but I tried Claimyr after posting my skeptical comment above. I was desperate after trying to reach the IRS for months about my deposit questions. It actually worked! Got connected to an IRS rep in about 25 minutes (was expecting to wait hours like usual). The agent confirmed that depositing previously taxed income isn't a problem as long as you have records. She even gave me specific advice about what documents to keep handy in case of questions. I'm genuinely surprised and relieved - finally got a straight answer from a real person!
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Douglas Foster
Just be careful about how you deposit the cash. I knew someone who made several deposits just under $10k to avoid the reporting and got in big trouble for "structuring." The IRS was much more concerned about the pattern of deposits than they would've been about a single large deposit. Sometimes trying to avoid attention actually brings more scrutiny!
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Tony Brooks
•Thanks for this warning. I definitely don't want to structure deposits - wasn't aware that was actually worse than just making one big deposit. So it sounds like being straightforward is the best approach? Would it help if I talked to my bank manager first to explain the situation?
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Douglas Foster
•Being straightforward is absolutely the best approach. Yes, I think talking to your bank manager beforehand is an excellent idea. Let them know you have a large cash deposit from your business that you've been saving, and that you've already paid taxes on it. Some banks actually appreciate a heads-up for large cash transactions so they can prepare accordingly. The manager might even have you schedule an appointment rather than just showing up at the teller window with a large amount of cash. This approach shows you're being transparent about the source of funds.
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Nina Chan
Has anyone used an accountant for this kind of situation? I'm thinking of bringing in a professional to help me document everything properly before I go to the bank. Seems like it might be worth the cost for peace of mind.
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Ruby Knight
•I used my regular tax guy when I deposited about $25k in cash from my food truck business. He wrote a simple letter explaining the source of funds and attached copies of my Schedule C from the relevant tax years. Cost me about $150 for his time but it was worth it for the peace of mind. The bank appreciated the documentation too.
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Felicity Bud
As someone who's been through a similar situation with cash from my handyman business, I'd recommend keeping it simple and straightforward. Don't overthink it - just make one deposit for the full amount. The bank will file their CTR for anything over $10k, but that's completely routine and not something to worry about. Before you go to the bank, gather up your tax returns from the years you earned this cash income. Having those handy shows you've been legitimate about reporting everything. You might also want to call ahead and let them know you're coming in with a large cash deposit - some banks appreciate the heads up. The key thing is you've already done the hard part by properly reporting and paying taxes on this income when you earned it. Now you're just moving money you own from your house to your bank account. Nothing suspicious about that!
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Yara Khoury
•This is really helpful advice! I'm in a similar boat with about $15k saved up from odd jobs over the past few years. I've been nervous about depositing it all at once, but it sounds like being upfront is actually the safer approach than trying to spread it out. Did you have any issues when you made your deposit, or did it go smoothly? I'm just worried about getting questioned extensively at the bank.
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