You need to be aware of that any money that is coming to you is taxable and it is surprisingly said by tax attorney Sam Brotman in San Diego. According to him everything you receive in form of money, IRS has right to tax it even the $10 you pick up from somewhere. He also mentioned that though these little money are taxable, people usually don’t declare them and hence tax Is not deducted from them. IRS would have to use more enforcement measures but that would cost the department more than the tax they would collect.
Here are the money items that you would be surprised to know are taxable
Employee Awards: There is some bad news for those of the best employees last year. The employee awards you receive for being a talented and extra ordinary employee are all taxable. Though gifts and achievement awards like gold, silver that are under $400, evade tax.
Lawsuit Money: Winning a case is not a hundred percent good news while you may have to lose some money as tax. So all the settlement money awarded to you by court fall in taxable finance though tax accountability on that money is quite hard.
Gambling Reward: Chicago’s tax attorney confirms the money won as lottery, gambling or betting is considered as income and so it is taxable. He also said that your gambling losses would be deducted against winnings.
Alimony: It might be relieving to get money from your ex-spouse, but again that is taxable. There is relaxation in property or child support payments.
Renting a room: According to IRS, if you are renting a room for more than 15 days, you are making it taxable so be careful while you rent any room on Airbnb next time. Keep your trip short.
Found Money: Remember the $10 we discussed in the very beginning, that amount is taxable and its called treasure trove tax. Suppose you found an envelope of money, or any such thing in the car you brought you are taxed for that amount.
Settlements: Just like money you get in a lawsuit or legal settlement, anything like that received as a settlement payment by gym, bank etc. for charging you extra is also taxable.