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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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Cities with the Lowest Tax Rates

The total amount of tax you pay reaches far beyond what you owe the federal government. Depending on where you live, most likely you're required to pay additional taxes, including property and sales tax. The disparity between the amount of tax you pay in a low-tax city and that in a high-tax city can be dramatic. Living in any of these 10 cities could save you a bundle, although the exact amount may fluctuate based on your income and lifestyle choices.

Cities with the Highest Tax Rates

Much ado is made in the press about federal tax brackets, but cities can carry a tax bite of their own. Even if you live in a state that has no income tax, your city may levy a variety of taxes that could eat away the entire benefit of living in an income tax-free state, including property taxes, sales taxes and auto taxes. Consider all the costs before you move to one of these cities, and understand that rates may change based on your family's income level.

Great Ways to Get Charitable Tax Deductions

Generally, when you give money to a charity, you can use the amount of that donation as a deduction on your tax return. However, not all charities qualify as tax-deductible organizations. While there are many types of charities, they must all meet certain criteria to be classified by the IRS as tax-deductible organizations. There are legitimate tax-deductible organizations in many popular categories, such as those listed below.

A Freelancer's Guide to Taxes

Freelancing certainly has its benefits, but it can result in a few complications come tax time. The Internal Revenue Service considers freelancers to be self-employed, so if you earn income as a freelancer you must file your taxes as a business owner. While you can take additional deductions if you are self-employed, you'll also face additional taxes in the form of the self-employment tax. Here are things to consider as a freelancer when filing your taxes.

Tax Deductions for Voluntary Interest Payments on Student Loans

Most taxpayers who pay interest on student loans can take a tax deduction for the expense ? and you can do this regardless of whether you itemize tax deductions on your return. The rules for claiming the deduction are the same whether the interest payments were required or voluntary.

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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

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

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

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

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

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

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

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

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

"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

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

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

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