Taxable and Tax Free Income
You may be asking yourself some of these questions while preparing your tax return:
- Do I have to claim my babysitting income on my tax return?
- What about the money I make from selling things online?
- What is considered taxable income and what is tax free income?
You can receive taxable and tax-free income as money, property, or services. Most taxable income is reported to you on a Form, some tax-free income can also be reported on a Form, however in general less likely.
For example employee wages including fringe benefits (Form W-2) Independent Contractor Income (one of the many 1099 Forms) and Bartering Income (Form 1099-B) or Rental Income (1099-Misc, Schedule C). Keep in mind a copy of most of these forms is also send to the IRS and/or State Tax Agency by the Issuer of the Form. These forms listed here are only a few of the many examples of taxable income. On the other hand you might receive income in form of cash e.g. baby sitting, tips as a waitress etc. that is not necessarily associated with a form, while it still might be taxable income on your income tax return.
Tax Free or Taxable Income?
A list of most common income types that are taxable in most cases. As you know, when it comes to Taxes there are always exceptions. We are here to help you to find out if they apply to you or not. Just contact us
Take a look at this page. If you are not sure whether one or more of your income types are indeed tax free, please contact us