The United States tax system is considered to be one of the most sophisticated topics of our days. So, if you are a U.S. citizen, you are required to file your main income, but also pay taxes on your unemployment benefits. If you do not want your business to get audited by the IRS, then do not forget to declare all your unemployment benefits as income. We are going to bring to your attention 10 most surprising things which are considered to be taxable.
If you are a betting man who prefers to spend both time and money in gambling venues, then you should be aware of the fact that if you have to report all your winnings to the IRS, in case they exceed $600. We also have good news for you, since you are also able to deduct your loses; all you need to do is have all the necessary records at hand in order to prove to the IRS that fortune does not always smile upon you.
Let’s say you are a lucky person who has won a big prize. Do not hurry to celebrate your winning, since the IRS requires you to declare the entire value of your big win as income.
Even if you are a student, this position does not protect you from paying taxes. That’s because scholarships are also considered as taxable income with the aim of covering costs such as books, supplies and rooms.
If you are a football player who has succeeded in their career by making good money, you have to report your income to the IRS since it is also considered to be a type of gambling winning.
If you are getting alimony payments, you have to calculate them along with your income and pay taxes on it. At the same time, these types of payments are fully protected in case the IRS decides to touch them.
It is hard to believe, but in case you defaulted on your credit debt or pay less than you owed, keep in mind that the unpaid amount will also be considered as income and you will have to include it in your taxable income.
If you have found something really costly, it does not matter whether it is a suitcase of money or a costly ring, it is still considered as income in the eyes of the IRS.
Of course, you do not have to pay taxes for presents that you got for your birthday. But if the total sum of your present is larger than $100, you have to report it to the IRS. However, if someone gave you a big sum of money for specific purposes, using that money specifically for this aim can help you avoid paying taxes.
If your total revenue is more than $25,000 as a single taxpayer, or more than $32,000 as joint filler, then nearly 85% of your benefits will be taxed.
As you can see, there are lots of things that are considered to be taxable, but there are many taxpayers who do not even know how to deal with such kinds of issues. If you have any questions concerning taxes, you can contact Prestige Auditors and we will help you figure out all your issues. Our team consists of professional tax experts who can help you with filing small business taxes for the first time, explain how investments taxed, or how to get tax exempt on Amazon or Walmart.
You can also visit our website where you can find lots of information about services that our team provides and read lots of informative blogs about taxes and business formation. You can also read this blog about U.S. fun tax facts.