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Other Types of Income

Interest


Taxable interest includes interest received from bank accounts, from loans made to others, and interest from most other sources.  Interest income is reported on Form 1099-INT.  


Dividends


The distribution ( A payment of cash or property made to a taxpayer) of money, stock, or other property paid to a stockholder by a corporation are dividends and are generally taxable.  Dividends income is reported on Form 1099-DIV.


Capital Gains and Losses


Capital gains and losses occur when a taxpayer sells a capital asset. 


State Tax Refunds


If the taxpayer claimed the state income taxes paid as either an itemized or business deduction in the prior tax year, then he must report the state income tax refund (part of the state taxes claimed in the previous year) as income in the year it was received.

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Cathy Fisher

Common Cents Bookkeeping and Tax Preparation

Serving Henderson, NC, Buncombe County, Polk County, Transylvania County

E: cathy@commoncentsqbo.com

P: 828-595-2835

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