What types of income are taxable

With the start of the tax season, the IRS reminds Americans that when completing this year’s tax return, they should consider not only income from their salaries, which are usually included in form W-2 or 1099, but also other budget revenues, which are also subject to taxation.

Such earnings may also include income that ordinary Americans can forget and do not report on their declarations. As a rule, such omissions do not cause reactions of tax authorities. But it should not be forgotten that by law such forgetfulness is fraught with trouble. Every year, only one percent of the returns can be checked. But experienced people say, you never know what will be of interest to the inspector, and what information he will try to use to prove your debt. If you need some help with your tax return, use special service that can assist with tax preparation tucson https://southwesttaxassociates.com/.

We offer you a list of some types of income from which the taxpayer is obliged to pay taxes if he does not want to get into trouble with the law.  

  1. Selling goods. For example, last year you decided to renovate your home, and after the repair you realized that you need to get rid of old furniture, unnecessary things and other household items. You have arranged a sale of your old things. Are such sales subject to taxes?  Be sure, you can not even doubt about it. Especially if you manage to sell things more expensive than you bought them.
  2. If you earn more than $600 a year, you must file a tax return. Even if you work for cash or get a tip. Everybody knows that. But the IRS considers even small part-time jobs as income. For example, a neighbor leaves you a child for the evening, or you drive a friend to the airport, or help a neighbor to remove leaves. The main criterion is whether you get paid for it. If so, then you must pay taxes.
  3. Some young people in New York City earn money by speculating on tickets. They buy tickets for popular shows and then resell them online. Such resale of tickets (scalping) is against the law. However, the violation of the law does not exempt the speculator from paying taxes. And the tax authorities take this speculation much more seriously than the police.
  4. Tax agents are also interested in gamblers. All casino and lottery winnings are taxable and the IRS is very serious about this money.
  5. It should not be forgotten that all kinds of bonuses and prizes are taxed. The IRS is interested not only in the Nobel Prize winners or world chess champions, but also in all the lucky ones who have won various TV and radio contests and other prize drawings.
  6. Debt write-offs. If a company has forgiven you your debts, you have to pay tax on this amount.
  7. Taxes are also levied on various compensations and other court-ordered payments.