Please note the following tax due dates on your calendar, and come back often to keep up with the changes.
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Does the money you earned or received get taxed?
Having a grasp of what is nontaxable or taxable when doing your taxes could help you reduce your tax liability and possibly save you some money and stress. There are many ways that people receive an income, and some income may confuse people when it comes to tax season. Does the money you earned or received get taxed? A general rule of thumb when discerning whether something is taxable or not is: if it increases the money that you have, it is probably taxable. Though this may seem simple, it can never hurt to know as much as possible before you do your taxes! Here are some tips to help you figure out what is taxable and what is nontaxable!
Nontaxable income is something that will not be taxed, whether you include it on your tax return or not. The IRS classifies the following as nontaxable income:
Certain circumstances may also qualify the following items as nontaxable
For help determining whether specific incomes are nontaxable, call Brandt & Associates.
The three general ways that income is received are money, services or property. You may have to pay tax on income that is not yet in your possession, such as a check not cashed by the end of the tax year received. The IRS requires you to declare all income on your tax return, including:
Fringe Benefits Income
Another type of income received is fringe benefits for services rendered. These benefits are typically considered taxable, even if someone such as a spouse or a dependent receives them. These taxable benefits may include:
To find out these amounts or to see whether your fringe benefits qualify as taxable, call Brandt & Associates today.
Income that is often not identified as taxable but probably will need to be included on your tax return includes:
To determine whether something is taxable or nontaxable or to ask questions about the incomes listed above, call Brandt & Associates! We will help you determine what to include on your tax return and what to leave off.