Most income is taxable unless it’s specifically exempted by law. Income can be money, property, goods or services. Even if you don’t receive a form reporting income, you should report it on your tax return.
Income is taxable when you receive it, even if you don’t cash it or use it right away. It’s considered your income even if it’s paid to someone else on your behalf.
Types of taxable income
Taxable income can include payments you receive from:
Employment
Wages and employee benefits included on Form W-2
Self-employment or side jobs
Freelance or independent contractor work
Goods or services you sell online
Gig work or side jobs, often through apps
Renting out personal property
Bartering services or goods
Royalties
Businesses
Partnerships or other business entities
Investments
Capital gains
Stock options, splits or trades
Interest
Dividends
Digital assets or cryptocurrency
Benefits paid to you
Retirement plan distributions, pensions or annuities
Unemployment benefits
Social Security income
Some life insurance proceeds
Some survivor benefits
Other types of income
Tax refunds, reimbursements and rebates
Canceled debts
Alimony payments
Court awards and damages
Some scholarships
Gambling winnings
Prizes and awards
Related
Taxable and Nontaxable Income, Publication 525
Your Federal Income Tax, Publication 17