Taxable Income Is More Than Just Your Wages
Did you know more than just your wages make up taxable income?
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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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