Federal and state income taxes are due in eight days. Michelle Bachtel from H&R Block in Knox says it’s important not to exclude any sources of income.
“Pretty much all income, whether it’s reported or not reported, is taxable unless the law specifically excludes it,” Bachtel said. “This includes non-cash income from things like bartering or exchanging of assets. Both parties are expected to include the fair market value of the item or services they received as income on their tax returns.”
Bachtel says other types of income are not taxable. These include child support, welfare benefits, inheritances, gifts, damage awards for physical injury or sickness, cash rebates for a purchased item and some reimbursements for qualified adoption expenses.
Other types of income vary on a case-by-case basis and include scholarships, grants, life insurance proceeds and Social Security benefits. Bachtel says they can be taxable but usually are not.
Find more information online at www.irs.gov.