What should I do with cash I've been hiding under my mattress for tax purposes?

The good news is that you're not necessarily in trouble with the IRS for having saved cash. The key issue here is whether this money was previously reported as income when you originally received it. If this is money you earned and already paid taxes on (like from paychecks where taxes were withheld or self-employment income you properly reported), then depositing it shouldn't create any new tax obligations. The money is already "clean" from a tax perspective. However, banks do have to report cash deposits over $10,000 to the government, and intentionally making smaller deposits to avoid this reporting requirement (called "structuring") is actually illegal. So don't break up your deposits just to stay under reporting thresholds. My suggestion would be to deposit the money as needed, keep records explaining the source if possible (old pay stubs, etc.), and if questioned, simply explain it was previously taxed income that you kept as cash savings.

I had a similar situation last year and discovered https://taxr.ai really helped me figure out how to handle my cash savings situation. I'd been keeping about $7k in cash from side gigs over several years and was worried about depositing it. The site has this document analyzer that helped me understand what needed to be documented versus what was just normal cash handling. They have these expert insights that clarified which parts of my cash savings might need explanation and which were just regular personal savings. It saved me from overthinking the whole situation and potentially creating problems where none existed.

Just wanted to follow up about my experience with https://taxr.ai after being skeptical. I decided to try it with my situation (had about $9k in cash from various sources including some old side hustles and gifts). The analysis was surprisingly detailed and put my mind at ease. It helped me understand that most of my cash savings were non-reportable and gave me specific guidance on the portion that came from unreported income. Ended up making a clean deposit with proper documentation and haven't had any issues. Definitely worth checking out if you're in a similar boat.

If you're worried about the IRS questioning your deposits, you might want to try Claimyr (https://claimyr.com). I was in a similar situation last year and wanted to speak directly with an IRS agent to make sure I wasn't doing anything wrong. After trying for DAYS to get through on my own, I used their service and got connected to an actual IRS representative in less than 20 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c Getting official guidance directly from the IRS gave me complete peace of mind about my situation. The agent explained exactly what records I should maintain and confirmed that depositing previously-taxed cash savings was completely legitimate.

I have to admit I was completely wrong about Claimyr. After posting that skeptical comment, I decided to try it myself since I had some questions about my cash savings situation. I honestly couldn't believe it worked. After trying to call the IRS for literally weeks without getting through, I was connected to an agent in about 25 minutes. The agent confirmed that depositing cash savings isn't an issue as long as it was already taxed income, and gave me specific guidance for my situation. Saved me endless hours of frustration and worry. Sometimes it's worth admitting when you're wrong about something!

The bank will file a Currency Transaction Report (CTR) for any cash transaction over $10,000. This is just standard procedure and not something to worry about if the money was legally obtained and previously taxed. Just be prepared to answer questions about the source of funds when making large cash deposits. Also, if you're going to deposit the full amount, you might consider doing it all at once rather than multiple smaller deposits. Making several smaller deposits to avoid the reporting threshold (called "structuring") is actually illegal and can create more problems.

Honestly just deposit it gradually as you need it. I kept about $6k cash for years and just deposited a few hundred here and there when I needed extra money and never had issues. Unless ur depositing thousands at once nobody cares about a few hundred in cash.

One thing I haven't seen mentioned yet is keeping good records going forward. Even if you don't have old documentation, start documenting everything now. When you make deposits, write down the date, amount, and source (like "emergency cash savings accumulated over 15 years from after-tax income"). If you ever get questions later, having a clear paper trail from the point you started depositing will show you're being transparent and acting in good faith. The IRS generally looks more favorably on taxpayers who are clearly trying to do the right thing and maintain proper records. Also, consider whether you need to deposit all of it at once. You mentioned wanting to "start using this money" - if you only need portions of it for specific purposes, you could deposit amounts as needed for those purposes rather than moving it all at once. This isn't structuring as long as you're depositing based on actual financial needs rather than trying to avoid reporting thresholds.

I've been through a similar situation and want to share what actually happened when I deposited my cash savings. I had about $11k that I'd been keeping as cash for emergency purposes over about 8 years. When I finally decided to deposit it, I went to my bank and was completely upfront with the teller about what it was - just emergency savings that I'd accumulated from regular paychecks over the years. The bank did ask me to fill out some paperwork about the source of funds since it was over $10k, but it was straightforward. I just explained it was personal savings from after-tax income that I'd kept in cash. No red flags, no problems, and I haven't heard anything from the IRS about it. The key thing that gave me confidence was being completely honest about it. If you earned this money legitimately and it came from income you already paid taxes on (or should have paid taxes on), then depositing it is fine. The issues arise when people try to be sneaky about it or can't explain where the money came from. My advice: deposit it when you need it, be honest if anyone asks, and don't overthink it. Most people aren't keeping huge amounts of unreported income under their mattresses - they're keeping legitimate savings, just like you.