Sunday, February 03, 2008

On Your Taxes, Don't Forget to Include...

Ok, so I was working through our taxes, and I was looking at the various types of "other income" (reportable on IRS Form 1040, line 21, if you need to know). True items of "other income" listed in Publication 525, Taxable and Non-Taxable Income (if you want to check my sources):

Bribes: If you receive a bribe, include it in your income.
Found property: If you find and keep property that does not belong to you that has been lost or abandoned (treasure-trove), it is taxable to you at its fair market value in the first year it is your undisputed possession.
Illegal income: Illegal income, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.
Kickbacks:You must include kickbacks, side commissions, push money, or similar payments you receive in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity. Example: You sell cars and help arrange car insurance for buyers. Insurance brokers pay back part of their commissions to you for referring customers to them. You must include the kickbacks in your income.
Stolen property: If you steal property, you must report its fair market value in your income in the year you steal it unless in the same year, you return it to its rightful owner.

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