Thanks for your inquiry. USAA provides a 1099-INT to an account holder has a combined interest earned of $10 or more or backup withholding in the previous year. Please see you tax advisor regarding specific tax strategies.
Cynthia from USAA doesn't answer the question. I have the same question and wasn't able to get it answered by customer service. I'm aware of the 1099 form for interest baring accounts but the question is - why is there a deduction being made in the name of taxes? where does this money go?
Hi kaycee1 - I've sent a secured email to your online message center in reply. To access it, simply click your name, select Alerts & Actions and scroll down to Notifications. - Cathleen
taylor kay, taxes can be withheld from an account for a variety of reasons, such as:
Please allow me some time to research the withholding reason for your account. I'll reach out to you shortly. ~Darcy
Same here. I have filled out the new W-9 twice since July 2018 and still taxes are being withheld monthly versus me the tax payer reporting it at the end of the year via the 1099-INT provided by USAA.
USAA gave me the rude answer of "contact the IRS" if I had further questions without ever explaining why they are now deducting taxes every month nor why they automatially begin deducting them before giving us the member a chance to sign and send the W9 back to them.
This is pure BS on USAA's part. Publish a layman's explanation as to why this is happening and educate your customer service represenatives so they can answer the question intelligently.
We are all aware we must report our 1099-INT when filing our taxes at the end of the year, but what changed that requires USAA to now deduct it monthly and where is the money going monthly since it is not due to the IRS until 15 April every year?
I can certainly understand the frustration and confusion this has created for you, @KennaWayne. I've sent a request to a Subject Matter Expert to check into this and follow up with you. Please allow sufficient time for the research that's needed to be completed. - Cathleen
We regret to hear of the service you encountered. This is not the type of experience we expect for our members. We have taken this opportunity to share your comments with our Member Feedback Teams. We certainly hope this experience will not be a deciding factor in your continued relationship with USAA.
If we can be of any further assistance regarding this matter, please contact us at 1-800-531-8722. Thank you for taking the time to post.