Types of Income - Taxable income as defined by the IRS Tax Code

Wages, salaries or tips

 If you participate in your employer’s Section 125 Cafeteria Plan, deduct the monthly withholds for the plan from your monthly gross wages. This may already be accounted for on your pay stub. Look for the amount called ‘taxable wages or taxable income’ and enter that amount. If you do not have a cafeteria plan, then enter the gross wages amount. If you enter an amount less than your gross wages, you will receive a written request to submit pay stubs at a later date. Do not submit pay stubs now, wait for the letter and follow all instructions.

  • Taxable interest received and Tax-exempt interest received
  • Dividend income
  • Taxable state refund (only if you itemize deductions on the federal tax return)
  • Alimony received
  • Business income or loss
  • Capital gain or loss
  • Traditional IRA distributions
  • Pensions and annuities
  • Rental real estate, royalties, partnerships, S corporations, trusts
  • Farm income or loss
  • Unemployment compensation
  • Social Security benefits (Include amounts for SSA retirement, survivor benefits and disability insurance)
  • Other taxable income not listed above (examples are gambling winnings, lottery proceeds, prizes)
     
  • Do not include:

    • Payments from Supplemental Security Income - SSI, as these are non-taxable
    • Money received for child support as this is non-taxable
    • Any payments from the Veterans Administration (VA) as these are non-taxable
    • Any monies received directly through inheritance as these are non-taxable
    • Support from parents, other family members or friends as this is non-taxable
    • Loan proceeds as these are non-taxable
    • Worker's compensation proceeds as these are non-taxable
    • Any governmental program such as TANF, SNAP, housing benefits, etc., as these are non-taxable
    • Tribal support except for any support coming from tribal gaming casinos

     

Expenses (Adjustments to Income)

If you claim any of the following expenses, you will be required to submit documentation to prove the claim.  Follow the instructions in the letter you will shortly receive.  

Expenses listed on the 1040 federal tax return by line # and name  

23.          Educator expenses (employed by school, kindergarten through 12th grade).

24.          Certain business expenses of military reservists, performing artists and fee-basis government officials only.   

25.          Health savings account deductions.  

26.          Moving expenses for Active Duty Military.

27.          Deductible part of self-employment tax.

28.          Self-employed SEP, SIMPLE, and qualified plans expense.

29.          Self-employed health insurance deductions.

30.          Penalty on early withdrawal of savings.

31a         Alimony paid – (include ex-spouse’s SSN).

32.          Traditional IRA contribution deduction.

33.          Student loan interest deduction.