# Do I need to declare as income money I am saving for someone else in my name? **URL:** \ **Category:** Factual Questions\ **Created:** [June 3, 2006, 2:12pm UTC](https://boards.straightdope.com/t/do-i-need-to-declare-as-income-money-i-am-saving-for-someone-else-in-my-name/359286 "2006-06-03T14:12:31Z")\ **Posts on this page:** 7\ **Page:** 2
**Author:** ![pkbites](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/pkbites/32/204_2.png) [@pkbites](https://boards.straightdope.com/u/pkbites)\ **Post date:** [June 4, 2006, 4:03pm UTC](https://boards.straightdope.com/t/do-i-need-to-declare-as-income-money-i-am-saving-for-someone-else-in-my-name/359286/21 "2006-06-04T16:03:51Z")
> [@I\_Know\_Nothing](#): > > He’s tried to open a savings account with a money order but all the banks hes talked to will only open one with a personal or cashier’s check. That sounds like nonesense. A money order is more secure to a bank than a personal check. Did he try cash? Would they take cash? ---
**Author:** ![A.R.Cane](https://avatars.discourse-cdn.com/v4/letter/a/ee7513/32.png) [@A.R.Cane](https://boards.straightdope.com/u/A.R.Cane)\ **Post date:** [June 4, 2006, 4:36pm UTC](https://boards.straightdope.com/t/do-i-need-to-declare-as-income-money-i-am-saving-for-someone-else-in-my-name/359286/22 "2006-06-04T16:36:06Z")
I agree that the reasons given for not being able to open a savings account are bogus. I don’t know what kind of relationship the OP has w/ his brother, or what kind of guy the brother is, but this sounds very suspicious to me. I wouldn’t touch this deal w/ the proverbial “ten foot pole”. ---
**Author:** ![Mr.Slant](https://avatars.discourse-cdn.com/v4/letter/m/c57346/32.png) [@Mr.Slant](https://boards.straightdope.com/u/Mr.Slant)\ **Post date:** [June 4, 2006, 7:09pm UTC](https://boards.straightdope.com/t/do-i-need-to-declare-as-income-money-i-am-saving-for-someone-else-in-my-name/359286/23 "2006-06-04T19:09:31Z")
On your OP, the money he is giving you does not increase your assets. As soon as he hands the money to you, your liabilities increase by the same amount he just gave you. Example: Beginning Person A (You) Cash Assets: $5000 Liabilities: Owes Nothing to Anyone Net Worth Equation: $5000 - $0 = $5000 Net Worth: $5000 Person B (Brother?) Cash Assets: 1000 Liabilities: -50000 Net Worth Equation: $1000 - $50000 = - $49000 Net Worth: - $49000 Okay. Now Person B hands Person A $500 to keep for him. Here’s the new accounting: Person A (You) Cash Assets: $5500 Liabilities: $500 owed to Person B Net Worth Equation: $5500 - $500 = $5000 Net Worth = $5000 Person B (Brother?) Cash Assets: $500 Accounts Receivable: 500 from Person A Liabilities: -50000 Net Worth Equation: $500 + $500 - $50000 Net Worth = - $49000 Notice that no net worths actually change? Counting this as income would be the same as taking a loan out from the bank for $5000 and considering that $5000 in income. ---
**Author:** ![Mr.Slant](https://avatars.discourse-cdn.com/v4/letter/m/c57346/32.png) [@Mr.Slant](https://boards.straightdope.com/u/Mr.Slant)\ **Post date:** [June 4, 2006, 7:49pm UTC](https://boards.straightdope.com/t/do-i-need-to-declare-as-income-money-i-am-saving-for-someone-else-in-my-name/359286/24 "2006-06-04T19:49:35Z")
Some banks will, indeed refuse to open you a savings account if your credit score and/or Chexsystems entry relays certain data. If your Chexsystems entry, in fact, said something along the lines of “convicted check forger, molester of bank president’s grandkids, bank robber, 419 scammer, $20 counterfeiter and general asshole” then many banks would probably show you the door when you tried to open an account. Some banks just won’t accept ANYONE with a credit score below… let’s say 580. Reason being, you might bank responsibly, but in the end they don’t WANT your low-dollar deposit accounts to hassle with; they want you to finance a car with them and use their credit cards. With a 549 FICO score, they don’t expect to profit from you. As far as refusing to accept a money order as an initial deposit, they MAY have adopted this policy as a response to the number of scammers issuing fake money orders. Google: financial fraud “money order” and read the results for 5 minutes and you’ll get what I’m talking about. Based on the contents of the thread Arjuna34 references, I’d suggest declining to support your brother in this fashion. If he needs some way to store value without it being accessible to criminals who might steal or rob it from him, he should consider buying “stored value cards” at his local drug store or god forbid, one of those check cashing places. Also, if he’s working at all, he needs to contact ANY government creditors he has and arrange some kind of payment plan. The government’s collection powers will kick your ass, take your wallet and date your wife using the money. It is far better to be paying them 20% of your income than to have them come out of nowhere and take half your paycheck out of nowhere, your car, your house and all of your personal valuables. Good luck to both of you! ---
**Author:** ![I\_Know\_Nothing](https://avatars.discourse-cdn.com/v4/letter/i/f04885/32.png) [@I\_Know\_Nothing](https://boards.straightdope.com/u/I_Know_Nothing)\ **Post date:** [June 4, 2006, 11:38pm UTC](https://boards.straightdope.com/t/do-i-need-to-declare-as-income-money-i-am-saving-for-someone-else-in-my-name/359286/25 "2006-06-04T23:38:08Z")
Well I called my brother and cleared up a few misunderstandings. I was under the impression that he had a bunch of money laying around but he couldn’t open a savings account because he kept getting turned down. He was only turned down once when he tried to buy a CD over the internet with a money order and they told him they only accepted personal or cashiers checks, but that was the only one. (whether or not the checks had to be in the buyer’s name, I don’t know). He does currently have one savings account. Sorry but the information on which I based my question was ‘a little’ off. I somehow got the wrong impression during our conversations. The reason he wants me to open one for him has to do with sp,e slightly shady stuff. Thanks for all the info. ---
**Author:** ![A.R.Cane](https://avatars.discourse-cdn.com/v4/letter/a/ee7513/32.png) [@A.R.Cane](https://boards.straightdope.com/u/A.R.Cane)\ **Post date:** [June 4, 2006, 11:58pm UTC](https://boards.straightdope.com/t/do-i-need-to-declare-as-income-money-i-am-saving-for-someone-else-in-my-name/359286/26 "2006-06-04T23:58:11Z")
I have two brothers and a sister, all of which are ten and more years younger than me. I get along w/ my next oldest brother very well, even thougfh we live 600+ miles apart and very rarely see each other. The other two have chosen to distance themselves from me, for reasons that are a total and complete mystery to me. The brother that I do communicate w/, and I, have an unspoken trust. I’ll be there if and when he needs me, and I’m positive he feels the same. By the same token I would never consider involving him in anything even the slightest bit illegal or shady and I trust that he would never do any such thing to me. If either of my other two siblings called on me for help I’d be inclined to give it, but I’d have to give it serious consideration first. I can only wish you the best of luck w/ your current situation. ---
**Author:** ![ParentalAdvisory](https://avatars.discourse-cdn.com/v4/letter/p/53a042/32.png) [@ParentalAdvisory](https://boards.straightdope.com/u/ParentalAdvisory)\ **Post date:** [June 5, 2006, 12:47am UTC](https://boards.straightdope.com/t/do-i-need-to-declare-as-income-money-i-am-saving-for-someone-else-in-my-name/359286/27 "2006-06-05T00:47:59Z")
Well you can go to the ghetto bank, TCF. They take just about everyone. [Previous page](https://boards.straightdope.com/t/do-i-need-to-declare-as-income-money-i-am-saving-for-someone-else-in-my-name/359286.md?page=1)