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| | November
2000 On-line Tax Planning
What's
Taxed; What's Not
What
Income Do You Have To Report?
To make your income-tax planning more effective, you should have a
clear picture of your current tax situation. This means knowing what
your taxable income was in 2000 and what it is estimated to be in
2001. Step one in this process is establishing the amount of your
2000 taxable income.
Generally, you are required to report and pay taxes on all income that
derives from your labor or capital. This applies to income received
in any form (e.g., cash, services, meals, stock, property, etc.). However,
certain types of income are tax exempt. The following lists include
the most common items in both the taxable and nontaxable categories.
Forms of Taxable Income
 | Wages, salary, fees, commissions, or business profits. |
| Gains received from dealings in real estate, securities, and other
property. |
| Dividends. |
| Rents. |
| Alimony and separate maintenance payments that the payer can deduct. |
| Royalties. |
| Income from your share of an estate or trust, aside from gifts or
bequests. |
| Annuities and pensions. |
| Certain fringe benefits. |
| Prizes and awards. |
| Up to 85% of your Social Security benefits, depending on the amount
of your other income. |
| Accrued interest earned but not actually received (for example,
accrued interest earned on a zero-coupon bond held in a taxable
account or accrued interest earned on U.S. Treasury
Inflation-Protection Securities (TIPS)). |
Forms of Nontaxable Income
| Interest earned from state, tribal, and municipal bonds and mutual
funds that own such bonds. |
| Gifts and inheritances. |
| Expense reimbursements from your employer. |
| Returns of capital such as loan principal repayments and the portion
of annuity and pension payments that represent a return of your
original investment upon which you have already paid taxes. |
| Home sale gains up to $250,000 for single homeowners and $500,000
for married homeowners filing jointly. |
These lists are not all inclusive. Contact us with any
questions.
Tax
Planning Archives
For More Information Contact:
Bucheri McCarty & Metz LLP
2366 W. Boulevard
P.O. Box 2147
Kokomo, IN 46904-2147
Telephone: (765) 236-2300
FAX: (765) 236-2333
Internet:
info@bmmcpas.com
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