What Counts As Taxable Income
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It’s easy to get confused when it comes to figuring out what you need to report as income on your tax return.
Today, I’m going over some of the most common ways to receive money as an entrepreneur and talking about what actually counts as income in your business so you can be prepared for your taxes.
Join me in this episode to learn more about determining your total income and how you can make sure you report it correctly to the IRS.
Also mentioned in this episode:
00:00 Understanding Tax Obligations for Self-Employed Individuals
10:36 What Counts as Income: Key Definitions and Examples
16:39 Clarifying Non-Taxable Income: Gifts, Loans, and More
Takeaways
You must report all income derived from your business activities.
Grants received are considered taxable income unless proven otherwise.
Cash income must be reported, regardless of the amount.
Reimbursements for personal expenses do not count as income.
Gifts are not taxable income if no service is exchanged.
Business loans are not considered taxable income.
Moving money between personal and business accounts does not count as income.
The IRS focuses on who holds the money when determining tax obligations.
Income generated from business operations is generally taxable.
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Links:
Link to pre-order my book, Taxes for Humans: Simplify Your Taxes and Change the World When You’re Self-Employed.
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