Taxable and Nontaxable Income

From the IRS…

images (5)
Most types of income are taxable, but some are not. Income can include money, property or services that you receive. Here are some examples of income that are usually not taxable:
• Child support payments;
• Gifts, bequests and inheritances;
• Welfare benefits;
• Damage awards for physical injury or sickness;
• Cash rebates from a dealer or manufacturer for an item you buy; and
• Reimbursements for qualified adoption expenses.
Some income is not taxable except under certain conditions. Examples include:
• Life insurance proceeds paid to you because of an insured person’s death are usually not taxable. However, if you redeem a life insurance policy for cash, any amount that is more than the cost of the policy is taxable.
• Income you get from a qualified scholarship is normally not taxable. Amounts you use for certain costs, such as tuition and required course books, are not taxable. However, amounts used for room and board are taxable.
All income, such as wages and tips, is taxable unless the law specifically excludes it. This includes non-cash income from bartering – the exchange of property or services. Both parties must include the fair market value of goods or services received as income on their tax return.

Please follow and like us:

MERGER OF BOSS BUSINESS SERVICES, ACORN CORPORATE SERVICES AND ANDERSON LAW GROUP

BOSS Business Services, Acorn Corporate Services, and Anderson Law Group unite and form one new company under its new name: Anderson Business Advisors.  Please read below to find out the details:

———————————————————-

BOSS Business Services, Acorn Corporate Services along with Anderson Law Group will be merging their companies to become one in order to be a new uniform entity.  The company’s new name change will occur before the end of the year and be known as Anderson Business Advisors.
Continue reading “MERGER OF BOSS BUSINESS SERVICES, ACORN CORPORATE SERVICES AND ANDERSON LAW GROUP”

Please follow and like us:

Tax Tips for Charitable Giving

From the IRS…

Six Tips for Charitable Taxpayers

Contributing money and property are ways that you can support a charitable cause, but in order for your donation to be tax-deductible, certain conditions must be met.  Read on for six things the IRS wants taxpayers to know about deductibility of donations.

1. Tax-exempt status. Contributions must be made to qualified charitable organizations to be deductible. Ask the charity about its tax-exempt status, or look for it on IRS.gov in the Exempt Organizations Select Check, an online search tool that allows users to select an exempt organization and check certain information about its federal tax status as well as information about tax forms an organization may file that are available for public review. This search tool can also be used to find which charities have had their exempt status automatically revoked.

2. Itemizing. Charitable contributions are deductible only if you itemize deductions using Form 1040, Schedule A. Continue reading “Tax Tips for Charitable Giving”

Please follow and like us: