WHAT IS CONSIDERED TAXABLE INCOME AND NON TAXABLE

Not all the mon­ey you receive is tax­able, TAXABLE MONEY IS GROSS INCOME MINUS DEDUCTIONS, although the major­i­ty of it is. if you sold some­thing for what it actu­al­ly cost the basis then you are pay­ing a tax on it. It doesn’t mat­ter if you worked for it, earned it or if it was some­thing back you got from a invest­ment. If it can make you rich the irs wants you to pay tax­es on it.

Pretty much the only thing you aren’t paying taxes on is the stuff that you or someone else has already paid it..

TAXABLE INCOME WOULD BE::::::

Types of tax­able income include the fol­low­ing:

  • Wages
  • Salaries
  • Com­mis­sions (includ­ing advance com­mis­sions)
  • Fees
  • Tips
  • Stock options
  • Inter­est received
  • Div­i­dends
  • Unem­ploy­ment com­pen­sa­tion
  • Back pay awards (from a set­tle­ment or judg­ment)
  • Bonus­es and awards (includ­ing vaca­tion trips)
  • Dif­fer­en­tial wage pay­ments
  • Notes received for ser­vices
  • Sev­er­ance pay
  • Social Secu­ri­ty and Medicare tax­es paid by your employ­er
  • Stock appre­ci­a­tion rights (in the year they’re exer­cised)
  • Cancelled/forgiven debt
  • Non-cash income from bar­ter­ing
  • Finan­cial coun­sel­ing fees paid for you by your employ­er
  • Roy­al­ties from copy­rights, patents, and oil, gas, and min­er­al prop­er­ties
  • Rents from per­son­al prop­er­ty
  • Cap­i­tal gains and loss­es
  • Gam­bling income and loss­es

THE NON TAXABLE IS:::

*SOME OF THESE MAY STILL NEED TO BE SEEN ON TAX RETURN**
  • Life insur­ance
  • Schol­ar­ship or fel­low­ship grant
  • Non-cash income
  • Employ­ee achieve­ment award
  • Gov­ern­ment cost-of-liv­ing allowances
  • Non­qual­i­fied deferred com­pen­sa­tion plans
  • Non­qual­i­fied deferred com­pen­sa­tion plans of non­qual­i­fied enti­ties
  • Sick pay
  • Refunds, cred­its, or off­sets of state/local income tax­es
  • Fringe ben­e­fits
  • Work­ers’ com­pen­sa­tion ben­e­fits
  • Social Secu­ri­ty ben­e­fits
  • Vir­tu­al cur­ren­cies

 Ener­gy con­ser­va­tion sub­si­dies

You upgrad­ed your home’s air con­di­tion­ing sys­tem and got a rebate from your elec­tric ser­vice provider as a reward for your ener­gy sav­ing efforts. That finan­cial thank-you from a pub­lic util­i­ty, either as a direct or indi­rect sub­sidy for the pur­chase or instal­la­tion of a home ener­gy con­ser­va­tion mea­sure IS ALL TAX FREE.