Is it income?

Is it income?

sheepThe IRS says “all worldwide income” is taxable.  What does it mean?  It means if you find a $10 bill on the sidewalk, the IRS wants you to include it on your taxes.  Good ole Line 21 of Form 1040.  What else goes there?

  • Barter income (so if you do work for someone and they pay you by giving you a goat then put the fair market value of that goat on this line)
  • Canceled debts (did a credit card cancel a bill you owed?-well you will get a tax form and likely have to include it here)
  • Gambling winnings (if you itemized, you can deduct gambling losses up to that winnings amount)
  • Hobby income (if you don’t have a bona fide business but a hobby to get income from, put it here)
  • Jury duty pay 
  • Nonbusiness rental income (did you rent out your lawn mover to your neighbor for $50 one time? put that $50 here)
  • Recoveries of previously deducted expenses
  • Taxable distributions from Health Savings Accounts

Linda Reinhardt

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