#BusinessTipTuesday
Eight Categories That Should Be Reported As Gross Income!
By Amanda DiGiacomo
This week’s business tip is the Eight Categories That Should Be Reported As Gross Income!
We will be discussing eight typical categories that are considered gross income and must be reported on your taxes.
Below is a list of the most typical income types you must report:
- Compensations such as salaries, wages, commissions, tips, bonuses, certain fringe benefits, and stock options.
- Business Income from pass through entities such as sole proportions, partnerships, LLCs, S-Corps
- Virtual Currency most common example is bitcon. If you got paid via cryptocurrency you must include the fair market value of the currency in your income. Additionally, if you exchange or sell it you have to report the capital gains or losses.
- Earned Interest from savings accounts, bonds, and life insurance policies
- Collecting Rents and Royalties
- Shareholders are taxed when the income is disturbed as dividends.
- Payments received from Alimony, Unemployment, and Social Security benefits
- Prizes, Awards, Gambling’s, and Treasure finds
**Bonus Tip child support is not taxable for the payee and it is not a deduction for the payer.
Thanks for the continued support. I hope you found this business tip informative. Please make an appointment today to start prioritizing yourself and your business.
Best of luck and until next week my fellow business owners!
