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Wk8DQ1 - received during the year annuity and pension...

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Taxable income is gross income made by an individual or business that is considered taxable by a state or country, or both in the United States. There are certain things, depending upon income level and other country mandated deductions, that are reduced from the amount of income considered taxable. For most people, the largest source of total income is earned income from employment salaries, hourly wages, bonuses, tips, and commissions all of which is included in gross taxable income. Other sources of gross taxable income include business income, investment income, alimony, unemployment compensation, and retirement benefits. Unearned income may include interest and dividends from investments, net business income, rents, and royalties you
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Unformatted text preview: received during the year, annuity and pension income, awards for scientific and charitable achievement, gambling and lottery winnings, and scholarships spent on room and board. During the year, money is put aside from your paychecks to go towards the taxes you will owe at the end of the year. If you are self-employed, during the year you will make estimated tax payments that will decrease your tax liability at the end of the year. However, these payments almost never exactly equal your tax bill at the end of the year. At the end of the year, you will need to compare the total amount of money you have had withheld from your paychecks to your total tax liabilities....
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