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Curious about budgeting
Are there any tax implications for money in an emergency fund?
In general, money in an emergency fund is not subject to any specific tax implications as it is typically held in a savings account or similar lowrisk, lowyield investment vehicle. However, if the money in the emergency fund earns interest, the interest earned may be subject to taxes. It's important to check with your tax professional or financial advisor to determine any specific tax implications based on your individual circumstances and the country you live in.
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