Your Federal Income Tax 2016 Part 2: Part Two - Income (Tax Bible Series 2016)

Part Two - Income
The eight chapters in this part discuss many kinds of income. They explain which income is and is not taxed. See Part Three for information on gains and losses you report on Form 8949 and Schedule D (Form 1040) and for information on selling your home.
Table of Contents
• 5. Wages, Salaries, and Other Earnings
o Reminder
o Introduction
o Useful Items - You may want to see:
o Employee Compensation
 Babysitting.
 Miscellaneous Compensation
 Fringe Benefits
 Retirement Plan Contributions
 Stock Options
 Restricted Property
o Special Rules for Certain Employees
 Clergy
 Members of Religious Orders
 Foreign Employer
 Military
 Volunteers
o Sickness and Injury Benefits
 Disability Pensions
 Long-Term Care Insurance Contracts
 Workers' Compensation
 Other Sickness and Injury Benefits
• 6. Tip Income
o Introduction
o Useful Items - You may want to see:
o Keeping a Daily Tip Record
 Electronic tip record.
o Reporting Tips to Your Employer
 Electronic tip statement.
 Final report.
o Reporting Tips on Your Tax Return
o Allocated Tips
• 7. Interest Income
o Reminder
o Introduction
o Useful Items - You may want to see:
o General Information
 SSN for joint account.
 Custodian account for your child.
 Penalty for failure to supply SSN.
 Reporting backup withholding.
 Savings account with parent as trustee.
 Interest not reported on Form 1099-INT.
 Nominees.
 Incorrect amount.
 Information reporting requirement.
o Taxable Interest
 Interest subject to penalty for early withdrawal.
 Money borrowed to invest in certificate of deposit.
 U.S. Savings Bonds
 Education Savings Bond Program
 U.S. Treasury Bills, Notes, and Bonds
 Bonds Sold Between Interest Dates
 Insurance
 State or Local Government Obligations
 Original Issue Discount (OID)
o When To Report Interest Income
 Constructive receipt.
o How To Report Interest Income
 Schedule B (Form 1040A or 1040).
 Reporting tax-exempt interest.
 U.S. savings bond interest previously reported.
• 8. Dividends and Other Distributions
o Reminder
o Introduction
o Useful Items - You may want to see:
o General Information
 Dividends not reported on Form 1099-DIV.
 Reporting tax withheld.
 Nominees.
o Ordinary Dividends
 Qualified Dividends
 Dividends Used to Buy More Stock
 Money Market Funds
o Capital Gain Distributions
 Basis adjustment.
o Nondividend Distributions
 Liquidating Distributions
 Distributions of Stock and Stock Rights
o Other Distributions
 Information reporting requirement.
 Alternative minimum tax treatment.