Taxsmith urges taxpayer to know that most types of income are taxable. Income can include money, property or services that you receive. There are some times of types of income is NOT taxable…
Some income is not taxable except under certain conditions. Examples include:
All income, such as wages and tips, is taxable unless the law specifically excludes it. This includes non-cash income from bartering – the exchange of property or services. Both parties must include the fair market value of goods or services received as income on their tax return.
If you received a refund, credit or offset of state or local income taxes in 2012, you may be required to report this amount. If you did not receive a 2012 Form 1099-G, check with the government agency that made the payments to you. That agency may have made the form available only in an electronic format. You will need to get instructions from the agency to retrieve this document. Report any taxable refund you received even if you did not receive Form 1099-G.
Taxsmith always advises taxpayers to report all income. Allow your tax attorney to speak with you if you have any questions on whether or not your income is taxable. It is always better to be safe then sorry later when additional penalties and interest are added on to the balance due. If you have any questions please contact Taxsmith at 888.741.0272 or email us at firstname.lastname@example.org.