What Don’t We Pay Taxes On?

It's here. Tax Day 2016. Since most government offices were closed on Friday, the IRS gave you a few extra days to get your finances in order. But maybe you didn't know there are some things you have to pay taxes on.

Every April, Americans have to file tax returns reporting their income. For most people, this means salaries, wages, and if you’re lucky interest, dividends, and capital gains from your investments.

These are the things we all know about and are careful to make sure we have then itemized and reported. But did you know there are a ton of other things that are supposed to be included . It’s up to you to report them, but not everyone does.

According to time.com here’s a list of 10 things that you technically have to pay taxes on.

1. Stuff you sell

If you sell something on eBay, Craigslist, or to your friend, your profits are income and therefore taxable.

2. Bartered items and services

Sometimes bartering is just easier; you exchange one service for another without using currency. The IRS, however, says you owe taxes on those items.

3. Gambling winnings

“Gambling winnings are fully taxable and you must report them on your tax return.

4. Unemployment income

If you’re on unemployment, you have to your benefit as income. The government even sends a Form 1099-G to let you know how much you received.

5. Forgiven debt

If your lucky enough to have your debts forgiven you still have to pay taxes on that balance since it directly affects your bottom lines.

6. Airbnb rentals

If you rent a room or your residence for more than 14 days in a year, you generally owe taxes. But if you do, you can also deduct certain housing expenses, reducing your tax bill.

7. Alimony

If you pay alimony, the IRS claims you can deduct it, and if you receive it you have to report it as income and pay income taxes on it.

8. Scholarships

Scholarships, now this gets a little complicated. If you are given a scholarship for tuition, enrollment fees, and course related expenses, you don’t have to pay taxes on it. However, if it’s for other stuff like room and board or is given as payment for work (work-study, for example) it’s likely taxable.

9. Draftkings

Regardless of whether you consider Draftkings to be gambling or not, it’s still income and therefore taxable, which is why you have to submit a W-9 if you play.

10. Buried treasure

Believe it or not found property are taxable in the year they are first found, Interestingly, however, a pirate who is missing his or her buried treasure could write off the literal loss as a business loss, if the business was legitimate.

So happy returns, just remember the items above are the ones that could land you in some hot water, and maybe even an IRS audit.

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