Taxes: Sources of income you might not have thought of
- Any kind of check that you receive from the government is taxable income, including unemployment payments and most Social Security income. Social Security income is only taxed as income if you have income from other sources. Any kind of government assistance that is in-kind (in product, not cash) is not taxed, such as food stamp benefits.
- If you happen upon unexpected money, you will almost definitely have to report it as income. Many people forget to pay taxes on end of the year bonuses, gambling winnings and inheritance. You may want to talk with an accountant if you happen upon unexpected money, because money from different sources has different tax rates.
- Gifts are taxable, even if they are not cash. Gifts valued (the value of a gift is the amount that the giver paid for it) at less than $1,600 are tax exempt, but anything valued at more than $1,600 is taxed. Gift tax means that if you are given a cabin worth $50,000, you must pay taxes out of pocket on $48,400.
- When you are called to jury duty, the government pays you a small hourly wage and reports that money to the IRS. That money is a wage and thus technically income -- and you owe taxes on it.