$1,000 in interest income, and $5,000 in sales from your e-commerce business, your gross income for the year would be all of those income sources added up and total $86,000 before taxes.

The amount you’ll owe is directly tied to your tax bracket; The higher the bracket, the greater the percentage you’ll owe on interest income. The IRS classifies the interest earned from ...

But that interest comes at a price. Generally, the IRS requires you to pay federal taxes on any savings account interest you earn in a given year, regardless of whether it’s $1 or $100.