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Nov 16, 2020Retirement Income
When retired, you may receive social security benefits or pension income. Social security benefits are received on Form SSA-1099. Form 1099-R is used for pension income. All statements must be reported on your federal tax return. Whether or not your retirement income is taxable dependents on how the money was put into the pension plan. […]
adminNov 16, 2020Alimony
Spousal support (alimony) payments are considered taxable income for spouse or common-law partner prior to 2019. If divorced before 2019 and paying alimony, these payments are considered an above-the-line deduction. Beginning in 2019, if a divorce or separation agreement was executed after Dec. 31, 2018, the alimony is no longer included in a spouse’s (recipient) […]
adminNov 16, 2020Reporting Cancelled Debts
If you have debt that is forgiven or discharged for less than the full amount you owe, the debt is considered canceled in the amount that you do not have to pay. Additionally, if the creditor cannot collect, or gives up on collecting, you will have a cancellation of debt for the amount you are […]
adminNov 13, 2020Gambling Winnings
Gambling winnings are fully taxable and must be reported on your taxes. Gambling income includes, but is not limited to, the following: The payer must issue you a Form W-2G, Certain Gambling Winnings if you receive winnings or if the winnings are subject to federal income tax withholding. You must report all gambling winnings as […]
adminNov 13, 2020Reporting Capital Gains
If you own something and use it for personal or investment purposes, it is a capital asset. If you sell a capital asset, the difference of the adjusted basis of the asset and the sale will lead to either a capital gain or loss. This is reported on Schedule D of your federal tax return. […]
adminNov 12, 2020Rental & Real Estate Income
Rental income is any income you receive for the use or occupation of property. This is reported on a form Schedule E. Most individuals operate on a cash basis, which means they count their rental income as income when they actually or constructively receive it, and deduct their expenses when they pay them. You must […]
adminNov 11, 2020How to Determine a Business vs Hobby
If you are earning money conducting an activity, you may need to report this on your tax return. In order to determine if you should report this on your tax return, you will first need to find out if you are conducting a business or if you simply have a hobby. The IRS defines a […]
adminNov 11, 2020Taxable vs Non-Taxable Income
You can receive income in the form of money, property, or services. Whether it is taxable or not depends on the type of income. All income must be reported on your tax return even if it is non-taxable. Additionally, your income is subject to tax unless it is exempted by law. The following is non-taxable […]
adminJul 2, 2018Tip Income
All tips are taxable and must be reported to the IRS. This includes cash tips received directly from customers, tips from customers using credit cards, and the value of any non-cash tips such as tickets, passes, or other items of value. As an employee who earns tips you have three responsibilities. You must: Use Form 4070 to […]
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