What kind of inome is taxable ?

Question

In the United States, what types of income are taxable and what kinds are not ?

Answer 1

Almost all income is taxable, but some may be partially exempt,such as social security (retirement).  I believe that workers compensation payments are non-taxable (from on the job injuries).  Some income may be sheltered from taxation until some future date, such as retirement.  Everyone receives a personal exemption depending on your marital status and how many children you have.  You can also claim itemized deductions for interest on a home loan, medical expense, charitable donations, state income or sales tax paid.  If you can not itemize, you are allowed a standard deduction based on your income.  Certain people are allowed business deductions: a police officer may deduct the cost of uniform expense, a salesman who pays his own travel or auto expense may deduct that, etc.

Answer 2

That's a broad question and the answer includes hundreds of different scenario.... I don't think anyone can answer you unless you look at the WWW.IRS.GOV website.

Why don't you ask a specific question on what it is you're wondering is taxable, such as "Is money I receive from a lawsuit taxable?"

Most "income" is taxable to various types of taxes such as federal, state, FICA, SECA etc.

Lawsuit payments that arise directly from a physical injury, disability payments you were covered for under a job in which you paid for the premiums (cost of the insurance) out of your own pocket after you've been taxed already, certain other types of government disability/welfare payments, and life insurance policies are generally not taxable.

In addition, a certain amount of gift money, up to $12,000 per year is not taxable.

Answer 3

Oh Dear,

All income is taxable.  There are tax free municipal bonds

Answer 4

Pretty much every non-service generated income is taxable. Better look under a specific catagory at www.irs.gov/ . Just be careful with them! They don't hire experts either and I've gotten BAD advice from the IRS.

I would recommend a qualified, trusted CPA for the real scoop.

Best wishes.