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.

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