Tiffany Raiford
The good news is that taxes are not always a terrible thing for many taxpayers. The bad news is that they are for some; and you still have to file them. They’re not fun to file, they’re not fun to think about, and it’s never fun to receive a letter from the Internal Revenue Service will a bill that states you did not file your income taxes correctly. Sadly, it happens. It’s happened to me in the past. I received a tax bill in 2013 for our 2010 return stating that I incorrectly reported the income from one of my 1099s. Thinking it was not even remotely possible, I doubled checked. I sure enough did – and it was an honest mistake. I didn’t add that last “0” and that was a hefty bill.
My mistake was honest, as many of them are. However, there are some taxable items that are taxable that you might not even realize, and we want to help you forgo making those mistakes when you file your own income taxes. Here are some of the items that are taxable you might not know about.
Egg Donation
If you are a woman who decided she wanted to donate her eggs to someone else, you have to pay taxes on the money you received as payment. It’s considered income, and it is taxable. You’ll be given a form 1099 from the clinic to which you donate, and you better include it on your income.
Gifts
You might not want to pay taxes on that nice big gift check your employer gave you for being such a good employee, but you have to. Gift tax is a real thing, and it’s a really annoying thing. Even if it’s a tangible gift rather than money, it’s taxable.
Stolen Money
I’m going to go out on a limb here and state that those of you who might have stolen money or items from someone are probably not going to report it as income on your income taxes. But just know that you should; it’s illegal not to. Bribes, theft, bank robbery or any other illegal means of obtaining money should all be reported on your income tax return. You know, in case you decide to turn over a new leaf. Not filing it is called tax evasion.
Gambling Winnings
Hey, that $1,500 you won in Vegas might seem great, but you have to pay taxes on it. Sorry, but that’s the truth. It’s a complicated process, and there are some stipulations that might get you out of reporting it, but it’s best to speak to a professional about this.
Fantasy Sports Winning
You won the fantasy football pool and raked in the cash, and now you have to pay taxes on it. It’s not fair, I know. However, you do have to report it if you win more than $600, according to IRS rules.
Scholarships
Ironically, this free money is not free money. You don’t have to pay it back like you do student loans, but you do have to pay taxes on it if you use it for certain purposes; such as room and board. If you use it for books and tuition, you’re tax-free. If you use it for anything else, prepare to pony up.
Photo by Getty Images
Comments
Loading…