Tax Related Questions > Income Sources

 
  • Ordinary Dividends
    Dividends are what the shareholders of a company get, as their share of the company’s profits. If you own stocks, mutual funds, or bonds, you receive ...
  • Qualified Dividends
    Dividends are divided into two broad categories: ordinary dividends and qualified dividends. Ordinary dividends are taxed at the same rate as ordinary...
  • Self-Employment Profit or Loss
    Subtract your self-employment expenses from your self-employment income. If the difference is positive, meaning your self-employment income was greate...
  • Taxable Interest Income
    Generally speaking, you have to pay taxes on any interest income you receive, including interest on bank accounts, deposited insurance dividends, and ...
  • Tax-Exempt Interest Income
    Tax-exempt interest is interest that is not subject to federal income tax. Income earned from bonds issued by states, cities, counties or the District...
  • Tip Income
    All tips are taxable and must be reported to the IRS, including cash tips you get directly from customers, tips from customers using credit cards, and...
  • Allocated Tips
    The basic idea behind allocated tips is that if you work in a restaurant, cocktail lounge, or similar establishment, you deserve 8% of the business’s ...
  • Roth IRA
    A Roth IRA is an individual retirement account (IRA) that is generally subject to the same rules that govern traditional IRAs, with a few notable exce...
  • Qualified Charitable Distribution
    Qualified charitable distributions allow IRA owners over the age of 70.5 to directly transfer up to $100,000 tax free from their IRA (excluding SEPs a...
  • Capital Gains and Losses - Schedule D
    Attach Schedule D to your 1040 to report your capital gains and losses. Starting in 2011 there is a new form that also deals with capital gains and l...
  • Self-Employment Tax
    Schedule SE calculates the tax due on your self-employment earnings. Generally speaking, you must pay self-employment tax if you earned $400 or more i...
  • Miscellaneous Income - Form 1099-MISC
    Form 1099-MISC reports various types of miscellaneous income other than wages, salaries, and tips, which are reported on a W-2 instead. Payments for ...
  • Wage and Tax Statement - Form W-2
    Employers must file Form W-2 for every employee they paid more than $600 in wages, tips, and other compensation, and from whom they withheld income, s...
  • Certain Gambling Winnings - Form W-2G
    Form W-2G is the tax form for gambling winnings and the federal income tax withheld on these winnings. You must provide a Form W-2G if You receive m...
  • What is the Adjusted Gross Income (AGI)
    Adjusted gross income (AGI) is a special calculation of income that determines your eligibility for certain credits and deductions. Most phase out or ...
  • What is Basis?
    The basis of a piece of property is usually the cost at which you bought it. This can include the amount you paid in cash, debt obligations, other pro...
  • Capital Gains or Capital Losses
    Capital gains occur when a capital asset, such as a home, household furnishings, real estate, stocks, or bonds, is sold. The difference between the am...
  • What Is Earned Income?
    Earned income is income that you had to work to earn, either working for someone else who pays you or working in a business you own and run. Use your ...
  • What Is Unearned Income?
    Unearned income is income that you did not work to earn. Unearned income is often important in figuring out if a dependent needs to file a tax return....
  • What Is Modified Adjusted Gross Income?
    Also known by its acronym MAGI, the modified adjusted gross income is figured by adding back to your Adjusted Gross Income (AGI) specific benefits, ex...