While reading up on the federal tax income tax code over at irs.gov I found sources of income the average American might not remember to report. And remember, if you lie on your federal taxes, you go to jail:
- Illegal income. Illegal income, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.
- Kickbacks. You must include kickbacks, side commissions, push money, or similar payments you receive in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040), if from your self-employment activity.
- Bribes. If you receive a bribe, include it in your income.
- Stolen property. If you steal property, you must report its fair market value in your income in the year you steal it unless in the same year, you return it to its rightful owner.
- Pulitzer, Nobel, and similar prizes. If you were awarded a prize in recognition of accomplishments in religious, charitable, scientific, artistic, educational, literary, or civic fields, you generally must include the value of the prize in your income.
Illegal Income, kickbacks, and bribes are one thing, but would the IRS really nail a guy for not paying taxes on his Nobel Peace Prize?
Posted by Red Scott @ 1:53 pm