Income: Personal Wages and Investments
As you work with this chapter, obtain the following Internal Revenue Service forms and publications to increase your understanding and to complete the chapter questions and problems.[3]
Form 1040 and Instructions
Schedule B (Form 1040)
Qualified Dividends and Capital Gains Worksheet (in the 1040 instructions)
Overview
This chapter covers the types of income most taxpayers earn or receive: salary, wages, commissions, interest, dividends, retirement, and Social Security. On Forms 1040 and 1040A, salary, wages, commissions, interest, dividends, retirement, and Social Security are reported in the income section on the face of each form. In Chapter 6, Special Tax Issues and Tax Credits, income from self-employment, rental property, partnerships, farms, and other sources will be covered. While this chapter primarily presents what is included as income, the first section will also cover what most taxpayers ask, “Is it taxable?” The general rule is: everything is taxable unless specifically excluded by law, regulation, or court decision.
[3] The forms and publications are in addition to Your Federal Income Tax, Publication 17, Internal Revenue Service.
