What is Taxable Income?
In this section we define taxable income and how
to calculate taxable income.
What is taxable income?
For tax filing purposes, taxable income is defined
as any income that is subject to tax. Taxable income
- earned income (such as wages and self employment
- unearned income (such as interest, dividends and
unemployment compensation and pension income)
Must all taxable income reported on tax returns?
Taxable income must be reported on a tax
return unless the taxable income is so small that the
taxpayer does not need to file a federal income tax return
according to the IRS.
List of income that are taxable income
- wages, salaries, bonuses, commissions
- taxable interest
- refunds of state and local taxes (if taxpayer itemized
deductions for the tax year the taxes were paid and the
taxpayer's tax liability was reduced because of the tax
- business income
- taxable portions of pensions and annuities
- taxable IRA contributions
- unemployment compensation
- taxable portions of Social security benefits
List of other taxable income
- Alaska Permanent Fund Dividend income
- allowances and reimbursements
- court awards and damages
- credit card insurance payments
- estate and trust income
- gambling winnings
- hobby income
- illegal income
- jury duty pay
- prizes and awards
- canceled debts
- rental of personal property