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8 Types of Taxable Income That Might Surprise You

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You'd think that figuring out the total amount of taxable income you've earned would simply be a matter of adding up all of your paychecks for the year, as well as investment income like interest and dividends.

But, of course, there's nothing simple when it comes to tax laws. That's why many other sources of taxable income often get overlooked.

Here are eight types of income that most Americans don't realize are taxable.



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What is IRS Form 8824: Like-Kind Exchange

Ordinarily, when you sell something for more than what you paid to get it, you have a capital gain; when you sell it for less than what you paid, you have a capital loss. Both can affect your taxes. But if you immediately buy a similar property to replace the one you sold, the tax code calls that a "like-kind exchange," and it lets you delay some or all of the tax effects. The Internal Revenue Service (IRS) uses Form 8824 for like-kind exchanges.

What are ABLE Accounts? Tax Benefits Explained

Achieving a Better Life Experience (ABLE) accounts allow the families of disabled young people to set aside money for their care in a way that earns special tax benefits. ABLE accounts work much like the so-called 529 accounts that families can use to save money for education; in fact, an ABLE account is really a special kind of 529.

What is IRS Form 8829: Expenses for Business Use of Your Home

One of the many benefits of working at home is that you can deduct legitimate expenses from your taxes. The downside is that since home office tax deductions are so easily abused, the Internal Revenue Service (IRS) tends to scrutinize them more closely than other parts of your tax return. However, if you are able to substantiate your home office deductions, you shouldn't be afraid to claim them. IRS Form 8829 helps you determine what you can and cannot claim.

What is IRS Form 8859: Carryforward of D.C. First-Time Homebuyer Credit

Form 8859 is a tax form that will never be used by the majority of taxpayers. However, if you live in the District of Columbia (D.C.), it could be the key to saving thousands of dollars on your taxes. While many first-time home purchasers in D.C. are entitled to a federal tax credit, Form 8859 calculates the amount of carry-forward credit you can use in future years, not the amount of your initial tax credit.

What is IRS Form 8379: Injured Spouse Allocation

The Internal Revenue Service (IRS) has the power to seize income tax refunds when a taxpayer owes certain debts, such as unpaid taxes or overdue child support. Sometimes, a married couple's joint tax refund will be seized because of a debt for which only one spouse is responsible. When that happens, the other spouse is said to be "injured" and can file Form 8379 to get at least some of the refund.

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Podriznilk

Seems to me that if the Government wants to tax every bit of money and property you receive they should also tax items like Food Stamps, Wefare payments, and all of the other forms of Government payouts!

April 14 2013 at 4:57 PM Report abuse +1 rate up rate down Reply
elginrancher

Good God !!! We wouldn't want the FED A group of off shore and domestic Banks to miss out of some money the American People have, They are a bunch of criminals robbing America of its wealth !

April 14 2013 at 1:48 PM Report abuse rate up rate down Reply
charlie

before long Obama will be taxing a small child's paper route.

April 14 2013 at 1:18 PM Report abuse rate up rate down Reply
jsa29

If your gambling losses exceed your winnings, do you still have to file?

April 14 2013 at 12:50 PM Report abuse rate up rate down Reply
1 reply to jsa29's comment
Stephen

Yes, especially if you receive a 1099-MISC form. Your winnings are shown on line 21 of the 1040 under Other income and your losses go on schedule A, under miscellaneous deductions, but cannot exceed your winnings reported.

April 14 2013 at 2:46 PM Report abuse rate up rate down Reply
lthrnck68

The gambling winnings is not a surprize. That is why some slots limit jackpots. If the winnings go $1,200 or more, it's gotta be reported. $1,199 or less does not.

April 14 2013 at 12:11 PM Report abuse rate up rate down Reply
1 reply to lthrnck68's comment
Stephen

That\'s not exactly true..$1,200 or more and you will receive form 1099-MISC, but ALL income should be reported, regardless of whether you receive a 1099 or not. As a former revenue agent, the first thing they\'re going to look at is your bank statements; well, after they ask you in the interview if you received any other income. It\'s best to play it smart and show it all. Like Benjamin Franklin once said \"pay every dollar of tax you owe, but not a penny more\".

April 14 2013 at 2:50 PM Report abuse rate up rate down Reply
edgarlongenecker

Oops... An... agency, ...

April 14 2013 at 1:07 AM Report abuse rate up rate down Reply
edgarlongenecker

"A agency of the government, is not the government, nor, a department, thereof," so, who are all these, would be govern mental, Alphabet Gangsters; FBI, CIA, BATFE[ces] [Hello, Bubbles]... IRS, ad nauseum...if not, lizards at law... ???

April 14 2013 at 1:06 AM Report abuse +1 rate up rate down Reply
clyogi

I was able to take a capital loss when I sold my AOL stock.

April 13 2013 at 7:55 PM Report abuse +1 rate up rate down Reply
snowpiano

For Jury Duty we got NOTHING but a form saying we WOULD NOT be paid a penny until the 3RD WEEK of service began. Needless to say it did not last that long! I LOST quite a bit of money for my service :-(

April 13 2013 at 6:48 PM Report abuse +2 rate up rate down Reply
Handsome John

The IRS taxes income. That's what they do. People may not like taxes but of course the IRS must tax income. Is this really so difficult for people to understand? I hear the same complaints about gambling winnings. When someone hits a jackpot at a casino they are aghast that they have to pay taxes on it. The IRS taxes your income. They don't care where it comes from...they tax all income. Again...what is so hard to understand here?

April 13 2013 at 2:57 PM Report abuse -2 rate up rate down Reply
1 reply to Handsome John's comment
Welcome Pookie

Handsome.. I served on a Jury.. I think we were paid $5.00 a day!! It cost me more to park, than what I was "reimbursed!!"

April 13 2013 at 3:20 PM Report abuse +3 rate up rate down Reply
1 reply to Welcome Pookie's comment
Stephen

Uh..where I served we got $6 per day and a ride from where we parked(free) to the courthouse by bus, which was also free. Those jurors who either didn\'t bother to read or just decided to ignore the instructions, parked near the courthouse and paid the meters or garages alot, with no reimbursement. If you think, there\'s no way you\'ll lose money..just your precious time.

April 14 2013 at 2:56 PM Report abuse rate up rate down