What additional income in the US is taxed, and what - no

Many US residents are looking for ways to earn extra money besides their main job, but the question often arises about which additional incomes are taxed and which are not.

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Edition The Penny Hoarder figured out this situation.

Extra income to pay tax:

• Tip;
• Income from freelancing;
• Money or gift cards you get for participating in paid surveys: regardless of whether you receive cash or a gift card, this is not a gift for the IRS, since you received this reward as payment for work done, therefore you must pay taxes on this income;
• Barter: If you repaired your neighbor's chimney in exchange for his son mowing your lawn, the IRS wants to know the value of these services in dollars and get taxes on them.
• Gambling winnings: You must report to the IRS about any money or prizes that you win in gambling. But you can also deduct your losses from these games from the taxable amount.
• Hobby income: If you make money on a blog, sell antiques, or make money from any other hobby, you should let the IRS know. But you can also deduct from the taxable amount the cost of this hobby, if it brings you income from which you pay taxes.
• Illegal activities: If you earned income from the sale of a stolen car, drugs, or other illegal means, by law, you must inform the IRS.
• Canceled debts: Please note, if you managed to negotiate with the lender about cancellation or reduction of the debt or come to an agreement with the hospital to reduce the cost of services specified in the invoice, you will have to notify the Revenue Service, indicating the savings in the form of income.
• Алименты: if you pay child support, then in the eyes of the IRS it is initially considered your income, and you must pay tax on it.

What additional income is not taxable:

• Olympic medals and prizes: thanks to the 2016 Act, athletes do not have to pay taxes on the awards they received at the Olympics and Paralympics.
• Child support: If you are a child support recipient, the payer has already paid taxes on them, and you do not owe anything to the IRS.
• Carpool: if you pick up travel companions at carpool stations, then any money you receive from passengers is considered to be reimbursement of your expenses, and not income, therefore you do not need to pay taxes on them. However, if you are a driver for services such as Uber or Lyft, you must pay taxes on the income received for the provision of transport services.

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