Follow Us
Follow us on FacebookFollow us on LinkedInFollow us on TwitterFollow us on Google PlusFollow us on YouTube

Article Detail

Is My Income Taxable?Monday 02/27/2012
DwayneDwayne Briscoe / Bookkeeping-Results, LLC
Owner / QuickBook Pro Advisor

888-692-2083 / 713-898-1648

www.bookkeeping-results.com
Is My Income Taxable?
So many people are never quite sure if they should or should not claim something, so here are a few basic items to help make that determination as what NOT to charge off as income:
 
Adoption - Expense reimbursements for qualifying expenses as it relates to an immediate family member are considered tax-free.
 
Receipt of child support payments - If you receive court-ordered child support, then that money is not allowable as part of your gross income.
 
Meals and lodging for the convenience of your employer - If your employer deducts this from their company financials as legitimate expenses for their benefit, then that perk is not passed onto you as being taxable.
 
Compensatory damages - If you’ve been awarded for physical injury or physical sickness in a lawsuit, then that money is yours which is not considered income which is taxable.
 
Welfare benefits - If you are afforded benefits as provided by the government in the form of welfare including but not limited to payments, food stamps, etc.
 
Cash rebates from a dealer or manufacturer - Any reimbursements that you receive for all of the discounts you get by mailing in your rebate coupons are yours to keep and not taxable.
 
 
Some areas that people may not think about though as being taxable income are listed below, so be sure and get your information prepared and ready:
 
 
Life insurance - If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. Life insurance proceeds, which were paid to you because of the insured person’s death, are generally not taxable unless the policy was turned over to you for a price.
 
Scholarship or fellowship grant - If you are a candidate for a degree, you can exclude from income amounts you receive as a qualified scholarship or fellowship. Amounts used for room and board do not qualify for the exclusion.
 
Non-cash income - Taxable income may be in a form other than cash. One example of this is bartering, which is an exchange of property or services. The fair market value of goods and services exchanged is fully taxable and must be included as income on Form 1040 of both parties.  Income from bartering is taxable in the year it is performed, which may result in liabilities for income tax, self-employment tax, employment tax, and/or excise tax.  Remember, barter dollars or trade dollars are identical to real dollars for tax reporting purposes.
 
 

About Our Show Advisor: Dwayne Briscoe is the founder and owner of Bookkeeping-Results, LLC.   Dwayne began his company in January 2007, based on the foundation to educate small business owners and bookkeepers who use QuickBooks®.  Working as a full-charge bookkeeper and trainer in a variety of industries for over 15+ years, he is a certified Pro Advisor with 5 certifications, including Enterprise Solutions and Point of Sale.  He is also an instructor at Brazosport College in Lake Jackson, where he teaches basic accounting, QuickBooks®, and basic payroll, along with hosting his own private classes.

 

Bookkeeping-Results, LLC has focused more on quality and not quantity for their clients, by paying attention to the details.  Through regular continuing education participation, as well as exploring additional ways of “thinking outside of the box” to help expand people’s knowledge of their own financial well being, it’s important to focus on not only saving the client money but also making the client money.

 

Previously broadcast from:
SKL @ BlogTalkRadio.com 11/07/2011 - 01/03/2014
CBS Radio's Talk 650 10/12/2009 - 07/01/2011
CNN 650 Radio News 11/08/2006 - 10/08/2009
KSEV AM700 04/04/2005 - 10/30/2006

Member Login

E-mail Address
Password
Forgot Password