Reporting Your Income to the IRS
There are many different kinds of income for which you might be responsible at tax time. Besides your W2, you may receive other income forms, the contents of which have to be reported to the IRS. We show you how.
• Lists the major types of taxable income
• Describes how each type of income is taxed
• Explains how to report your income, whether you e-file or not
Do your taxes online, for free: If you want to avoid costly mistakes, while at the same time taking advantage of all possible credits and deductions, you want to do your taxes online.
H&R Block allows you to work on your return for free, until you file. Work on your federal, state, and small business taxes, and pay nothing until you are satisfied with your return. Start now.
A look at the major taxable income types
The average taxpayer receives at least one W2 form every year. This form lists income, local and federal taxes withheld, social security taxes, etc.
But most people's returns are far more complicated than that: most taxpayers receive income from more than one source, and sometimes it is tough to figure out what is taxable, and how. To help you figure out what income must be reported, and how it is all taxed, we've created this guide to income types. Just click on the following links for more in-depth information about each type of taxable income, and for advice on reporting it at tax time:
• Your W-2 form is the most basic tax form that almost everyone receives. W2 wages.
• Interest paid to you is taxable, and must be reported. Taxable Interest Income.
• If a company paid dividends to you, that is income, and you must report it. Investment Dividends Income.
• Interest earned from corporate and government bonds is almost always taxable. Taxable Interest on Bonds.
• If you paid or received alimony payments last year, you report this to the IRS. Alimony and Child Support.
• Unemployment compensation benefits are considered to be fully taxable income. Unemployment Benefits.
• Social security benefits are considered taxable income, although not entirely. Social Security Benefits.
• Most of these benefits are considered to be taxable income. Retirement Plan Distributions
• Miscellaneous income that does not fit into any of the above general categories. "Other" Taxable Income.
• There are several types of income that are not taxed by the IRS. Tax-Exempt Income. Related IRS publications
You can get more information about your taxable income directly from the IRS, in the form of
Publication 525. Note: you will need an Adobe Acrobat Reader to view these publications, which you can get here. (But you probably already have it.)
Filing your taxes is easy
H&R Block this year, and you are guaranteed the biggest refund, the most accurate return, and the piece of mind of knowing that the IRS has received your filing.
Choose from the free program for simple returns, to the deluxe and premier products for those filing a full 1040 with schedules C/D and other forms. You can have your return reviewed by a tax pro, too!