Is All My Income Taxable?
Posted on Wednesday, October 03, 2012
Generally, all sources of income are subject to income tax unless specifically excluded. Here are some sources of money that are not taxable:
* Money received as a loan.
* Gifts and inheritances.
* Child support received.
* Welfare benefits.
* Worker’s compensation (generally).
* Damages received for physical injury or sickness.
* Cash rebates from purchases.
* Meals and lodging for the convenience of the employer on employer’s premises.
Some sources of money that may or may not be taxable depending on the circumstances:
* Life insurance proceeds.
* Scholarship grants.
One source of income that is often overlooked is generated by bartering. If you trade goods or services for other goods or services with another person, both of you need to report the fair market value of the goods or services as income on your tax return.
This list is by no means all inclusive. If you need additional information about tax, business, or financial matters, please contact our Fort Wayne or Marion office. Our CPAs are happy to help.
Posted in Tax And Accounting Topics For Business
Disclaimer: The information contained in Dulin, Ward & DeWald’s blog is provided for general educational purposes only and should not be construed as financial or legal advice on any subject matter. Before taking any action based on this information, we strongly encourage you to consult competent legal, accounting or other professional advice about your specific situation. Questions on blog posts may be submitted to your DWD representative.