Taxable income is the amount of money that an individual or entity earns and is subject to taxation by the government. It includes all types of income, such as wages, salaries, tips, bonuses, interest earned on savings accounts or investments, rental income from properties owned by individuals or businesses and more. In this post, we will explore 29 different sources of taxable income.
1. Freelance Income: If you work as a freelancer and receive payment for your services rendered, that payment is considered taxable income. This can include anything from writing articles to designing websites.
2. Rental Property Income: If you own a rental property and receive rent payments from tenants, that rental income is considered taxable.
3. Capital Gains: Any profit made from selling an asset such as stocks or real estate is considered capital gains and is taxed accordingly.
4. Dividend Income: If you hold stocks that pay dividends or other types of investment vehicles like mutual funds which pay dividends then those dividend payments are counted as taxable income under tax laws in many countries including the US.
5. Alimony and Child Support: These are both forms of support paid by one spouse to another after a divorce settlement has been reached but they are also considered taxable incomes for the recipient party according to IRS regulations.
6. Unemployment Benefits: If someone loses their job through no fault of their own then they may be eligible for unemployment benefits which are intended to provide temporary financial support until they find new employment opportunities but these benefits too fall under the purview of taxes in many jurisdictions around the world including most states in USA
7. Social Security Benefits: Once someone retires at age 62 (or earlier if they have disabilities), they can start receiving social security benefits which count towards their taxable income levels each year after retirement age has been reached; however there’s usually some form of exclusion provided depending on how much your overall earnings exceed certain thresholds set forth by law.
8. Gambling Winnings: If you win money from playing games like poker or slot machines in a casino, that gambling winnings are counted as taxable income by the IRS.
9. Inheritance Income: If you inherit assets such as real estate, stocks, bonds and other investments then all of these items become part of your taxable income level and must be reported accordingly for tax purposes.
10. Retirement Account Withdrawals: Once someone reaches retirement age they can start withdrawing funds from their 401k or IRA accounts which may also count towards their taxable income levels each year after retirement age has been reached; however there are usually some exemptions provided depending on how much your overall earnings exceed certain thresholds set forth by law.
11. Foreign Earned Income Exclusion: This provision allows US citizens residing abroad to exclude up to $105,900 (in 2019) of their foreign earned income from taxation but any amount above this limit will still be subject to taxes under normal rules unless additional exclusions apply based on individual situations such as employment status or residency requirements within specific countries where they work/live etc.
12. State Tax Refunds: Anyone who receives a state refund check is required to report it as taxable income for the year in which it was received since the original deduction may have lowered one’s tax liability when filing returns previously
13. Jury Duty Pay: Some states provide jurors with compensation for serving on juries but this too falls under purview of taxes in most jurisdictions around the world including most US states
14. Bartering Income: Any exchange that involves goods/services instead of cash payment still counts towards one’s total annual taxable income so if someone trades services with another person/business entity and receives something valuable in return then both parties need to account for those transactions properly while figuring out their respective tax liabilities at year-end
15. Severance Pay: If an employee is laid off due to downsizing or restructuring efforts then their severance payments are also considered taxable income.
16. Life Insurance Payouts: If an insured person dies and a life insurance policy pays out a death benefit to the named beneficiary, that payout is counted as taxable income by the IRS.
17. Scholarships and Grants: Any funds received through scholarships or grants may be subject to taxation depending on how they are used which makes it important for students who receive them to understand all relevant rules in this regard before accepting any such financial aid.
18. Disability Benefits: People who receive disability benefits due to medical conditions may need to pay taxes on those benefits if they go over certain thresholds set forth by law
19. Royalties from Intellectual Property: Anyone who owns intellectual property like patents, trademarks or copyrights can earn royalties from licensing deals but these too count towards one’s total annual taxable income levels under tax laws in most countries
20. Tips and Gratuities: These are often associated with jobs where employees interact directly with customers such as waiters/waitresses or hairdressers/barbers etc., which means that any cash tips received must be reported as taxable income each year.
21. Bonuses and Commissions: Like other forms of earned compensation, bonuses and commissions fall under purview of taxes in most jurisdictions around world including the US so people receiving these types of payouts need ensure accurate documentation is provided while filing returns at yearend
22. Stock Options: Employees who receive stock options from their employers usually have some form of tax liability associated with them especially if they exercise those options by buying actual shares at discounted prices relative market rates prevailing time when option was granted initially .
23. Annuity Payments:: If someone buys an annuity plan then regular payments made back by insurer constitute part his/her overall taxable incomes during retirement years when he/she starts receiving periodic installments based upon terms agreement signed earlier between parties concerned.
24. Forgiveness of Debt: When someone has debts forgiven by a creditor, they may have to pay taxes on the amount of debt that was forgiven because it is considered taxable income under normal tax laws.
25. Settlements and Awards from Lawsuits: If someone receives a settlement or award as result of winning lawsuit then that money too becomes part their overall taxable income levels each year after receiving such compensation; however there are usually some exemptions provided depending on how much your overall earnings exceed certain thresholds set forth by law.
26. Non-Cash Compensation: Some employers offer fringe benefits like company cars or housing allowances which are also subject to taxation so people receiving these types of perks need ensure accurate documentation is provided while filing returns at yearend
27. Income Earned from a Hobby or Side Hustle: Any revenue generated from activities that one engages in purely for personal enjoyment (e.g., selling crafts online, providing dog-walking services etc.) still counts towards annual taxable income levels since IRS does not distinguish between commercial vs non-commercial activities when determining what constitutes reportable incomes annually under tax laws in most countries worldwide including US
28. Fringe Benefits Provided by Employers: In addition to salaries/wages paid out directly employees some businesses may also provide additional benefits like gym memberships or health insurance premiums paid by employer which must be included as part employee’s total annual income level for reporting purposes annually.
29. Crowdfunding Campaign Earnings: With crowdfunding becoming popular way raising funds various projects ideas, this type funding too falls under purview of taxes in many jurisdictions around world including USA where platforms like Kickstarter Indiegogo operate today with millions users participating every year hoping receive support their creative endeavors anything ranging new gadgets charities social causes etc..