Types of Income to Report in Your Taxes
Sources of Income for Tax Returns
Anything that helps you generate money is considered a source of income. If you made less than $10,800 in 2018, you’re not required to file taxes.
We need to know if you’re employed, unemployed or self-employed. Or if you have a rental, retirement, any savings, investments or dividends, and any other income or expenses that you have.
Any action that makes you money is considered a source of income
Employed, Unemployed & Self-Employed Forms Needed
For employed we need your W-2’s. For unemployed we need your 1099-G state tax refund.
For self-employed, we need 1099 forms, K-1 schedules, records of other income verifying amounts that may not have been reported in the 1099s. Still, for unemployed, we need records of all your expenses, like check registers, credit card statements, and receipts of every transaction.
We need to know how you use your business assets to know the depreciation. If you have an office in your home and a 1040-ES form, which is a record of any estimated tax payments that you’ve made.
Only self-employed are required to show so much info because there’s no one else to verify the information. Employed are verified by employers and unemployed have nothing to verify
Rental & Retirement Income
If you have any rental income we need your income and expenses records, information of your rental properties for depreciation, and a 1040-ES form noting any estimated tax payments.
For your retirement income, we need the 1099-R form which shows your pension, IRA, and annuity income, form 8606 (Traditional IRA Basis), a 1099-SSA that shows any income coming from your social security, and a 1099-RRB form, which is your Railroad Retirement Benefits.
Rental & Retirement Income Checklist
Savings, Investments & Dividends
We need forms 1099-INT, 1099-OID, and 1099-DIV for the savings or interest incomes. Forms 1099-B, 1099-S showing income from stock sales and/or other properties. Dates of acquisition, costs, and another basis on sold properties (if not reported in 1099-B).
Form 1099-SA for health savings account or a for 1099-LTC for any long-term care reimbursements you got. Records of any expenses from your investments. Form 1040-ES, showing estimated tax payments made.
Savings, Investments & Dividends are not common forms and not required by everyone
Income & Losses
If you have any other sources like gambling (requires W-2Gsshowing income and expenses), jury duty, hobbies (income & expenses), prizes, awards, trusts, royalty income (form 1099-Misc.), other 1099s, and a record showing money given or received from alimony (including ex-spouse’s full name and social security number).
Anything that generates money is considered a source of income