Miscellaneous Income
The most frequently asked tax questions related to Miscellaneous Income
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Answer Tax QuestionsWrongful termination
Asked Thursday, February 09, 2012 by an anonymous user
Generally damages received for Wrongful termination are taxable as compensation.
Punitive damages
Asked Thursday, February 09, 2012 by an anonymous user
Punitive damages are taxable even if they relate to a physical injury or sickness. An exception to this exists for damages awarded under a state wrongful death statute.
Employer - Allocated Tips
Asked Thursday, December 21, 2000 by an anonymous user
Per the IRs requirements, certain employers must allocate tips if the percentage of tips reported by employees falls below a required minimum percentage of gross sales.
To allocate tips means to assign an additional amount as tip income to each employee whose reported tips are below the required percentage. All tips you receive are taxable.
If you do not have adequate records for your actual tips, you must include the allocated tips shown on your Form W-2 as additional tip income on your tax return Form 1040 line 7.
To allocate tips means to assign an additional amount as tip income to each employee whose reported tips are below the required percentage. All tips you receive are taxable.
If you do not have adequate records for your actual tips, you must include the allocated tips shown on your Form W-2 as additional tip income on your tax return Form 1040 line 7.
Alimony and Child Support - Partial payment
Asked Friday, December 15, 2000 by an anonymous user
When both alimony and child support are made together in a monthly payment, it is presumed that child support is paid first. If your husband did not pay the full amount in a month or many months, then you need to pick up as income the difference over the child support amount for that month as alimony and income on your tax return. It is reported on IRS Form 1040, page 1.
Babysitting income - subject to SE tax
Asked Monday, November 27, 2000 by an anonymous user
Generally, most babysitters are not employees of the parents they are providing babysitting services for, unless they are employees of a daycare or childcare center.
Self-employed babysitters file tax returns using the 1040 Schedule C and SE to report their earnings.
Depending upon the babysitter's tax liabilities, the babysitter may be required to remit quarterly estimated taxes.
Self-employed babysitters file tax returns using the 1040 Schedule C and SE to report their earnings.
Depending upon the babysitter's tax liabilities, the babysitter may be required to remit quarterly estimated taxes.
Lecture - Self-Employment tax
Asked Monday, November 27, 2000 by an anonymous user
If you only gave one lecture and only plan to give occasional lectures then that income is not subject to self-employment tax. If you actively seek lecture engagements and give them with reasonable regularity then your lecture fees are treated as income subject to self-employment taxes.
Taxi fare
Asked Monday, October 30, 2000 by an anonymous user
In the current year, generally, if you are not considered a highly compensated employee or officer, or corporate director or owner of 1% or more of the company, and you are asked to work outside your regular hours, (considered unsafe circumstances) then only $1.50 per each one way commute is taxable from the payments you receive for taxi's.
The excess over $1.50 is tax free.
The excess over $1.50 is tax free.
Meal money
Asked Monday, October 30, 2000 by an anonymous user
The overtime meal money you receive for occasional overtime is not taxable to you. Additionally, any train or cab fare home you receive while working the occasional overtime is not taxable.
Injury - On the job
Asked Monday, October 30, 2000 by an anonymous user
The employer's payment you received for permanent loss of use to a limb is tax free if the payment is based solely on the nature of the injury.