Taxable Income Is More Than Just Your Wages
Did you know more than just your wages make up taxable income?
Summarize with AI:ChatGPTPerplexity
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!
Keep reading: related insights
Guides and tools
Future-Proof Your People Tech Platform For 2026 Automating Form I-9 Verification: A Guide for HR Tech, Payroll, and Onboarding ProvidersBuild, Buy, or Blend? Finding the Right Payroll Tax Infrastructure for GrowthSolving Tax Compliance Challenges For Payroll ProductsChoosing the Right Tax Compliance API for your Payroll ProductThe Buyer’s Guide
to Payroll Tax EnginesFringe BenefitsPayroll Tax Geocoding GuideLocal TaxesMulti-State PayrollSalary calculatorSymmetry client stories
Latest articles
State Minimum Wage vs. Local Minimum Wage 2026 GuideFebruary Payroll Readiness: Compliance Deadlines & Platform StrengthOptimizing People Tech for 2026: Payroll & HR Compliance InsightsHighly Compensated Employees, Wage Bases, and the First Payroll Mistake of the YearWhat Payroll Teams Expect in January and How They Judge Your PlatformWhy the New Year Exposes Payroll System Weaknesses (And How to Prevent Risk)