Tagged: gross income

Picture of a "For Sale by Owner" sign near a street curb.

How Often Can I Exclude Gains on Selling a Home from Income Tax?

Many taxpayers are aware that it is possible to exclude gains earned on selling a home from their income tax return. However, a common question is how often and how many times a taxpayer can exclude such gains from their taxes? This article addresses these questions. The tax law that grants taxpayers the right to exclude gains on selling their...

Picture of Form 1040 pages 1 and 2.

Form 1040, Line 10: When are Tax Refunds Taxable?

When completing a Form 1040, there is often confusion related to Form 1040, Line 10. When are state and local income tax refunds taxable? When are they not taxable? Prior-Year State and Local Taxes Deduction and Taxable Income Whether or not refunds of state or local taxes are taxable depends on the answers to the following questions: Whether or not...

Photograph of page 1 and 2 of Federal Form 1040 stacked on top of one another.

Taxable v. Tax-Exempt Interest for Federal Income Tax Purposes

Generally, all income a taxpayer earns will be taxed on their federal tax return. In fact, the tax law (i.e. the Internal Revenue Code) states that federal income tax is assessed on “all income from whatever source derived”. The law even provides an extensive list of items that counts as part of the taxpayer’s income, and one of those items...