Taxable Income Is More Than Just Your Wages
Did you know more than just your wages make up taxable income?
The first thing that comes to mind when talking about “taxable income” is usually wages, salaries, and commission. However, it actually encompasses much more - essentially anything unless specifically stated by law that it is not taxable. Fun, we know. Aside from your wages, the following are examples that fall under this category:
- Salaries
- Bonuses
- Commissions
- Tips
- Alimony
- Back pay
- Security deposits
- Self-employment income
- Any compensation for personal services (helping someone move, etc)
- Forgiven debts
- Winnings from gambling
- Contest winnings
- Employee awards and cash prizes
- Trust income
- Estate income
- Farm income
- Income from a hobby
- Interest
- Life insurance interest
- IRA distributions
- Fees from jury duty
- Severance pay
- Freelance income
- Military pay and military pension
- Punitive pay
- Royalties
- Unemployment benefits or unemployment compensation
- Gross rent
- Rewards
- Taxable grants or university scholarships
- Lottery winnings
- Any profit from a sale
Did we miss an example? Comment below and let us know some more!
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