Category Archives: Income
As an employee, you likely receive wages, salaries or tips from your employer for your services. If so, you must include these amounts as part of your gross income when filing your taxes. Any withholdings are to be included in your income for the year they were withheld. Withholdings include Social Security, Medicare, and income […]
— Read moreA form 1099-INT reports all taxable interest you receive. You are required to report the amount on your federal tax return, regardless of whether or not you have to pay tax on the interest. You aren’t required to attach copies of the 1099-INT to your tax return, as long as you report the information. Understanding […]
— Read moreIf you’ve received retirement payments throughout the year from your pension, annuity, or similar type of plan, you’ll receive a Form 1099-R as a report of the fund distribution. Payments from Pensions and Annuities When you set up a retirement fund with your employer, you are essentially arranging a compensation agreement. Most retirement plans don’t […]
— Read moreYou can expect to receive a Form 1099-DIV if you’ve been paid dividends on stocks, or had capital gains distributions on mutual fund investments during the tax year. The different boxes on the Form 1099-DIV are: Box 1a: reports the full amount of ordinary dividends paid Box 1b: reports the amount of the sum listed […]
— Read moreIf you’ve been awarded money or damages through a court of law, it’s important to note whether the funds are subject to taxation as income. In order to determine if settlements or judgments need to be included in your income, you have to look at the individual item that the money is taking the place […]
— Read moreEach year you have to pay tax on any investment income you earn. For instance, a savings account earning $2,000 in interest has to be added to any taxable income and you’ll be required to pay tax on it. There are some types of investments that can be partly, or even entirely tax free, meaning […]
— Read moreIf you have a rental property, you are required to report the income you receive from tenants on your tax return. However, if you have a property that you use as your own home for most of the year, but rent for a short term, you may not have to report the income. In fact, […]
— Read moreThe summer is a great time to pursue a job if you’re a student. You have more free time, you gain responsibility, and learn about the real working world. This also means you’ll have to pay taxes, just like every other employee. These taxes support local communities, state, and federal governments. Students who chose to […]
— Read moreThose who receive Social Security income may be required to pay taxes on part of their benefits, though there are some who discover their benefits aren’t subject to federal tax. If you receive Social Security, how can you tell if your benefits are taxable? The following facts can shed a little light on how your […]
— Read moreThis year, taxpayers may notice a new tax that applies to income from investments. Known as the Net Investment Income Tax, you may be responsible for paying this tax if your regular income is over a certain threshold, and you have investment income. If you think you might be subject to this tax, you’ll want […]
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