Define: Income

Yes, any income earned, whether from a regular job or side gig, is subject to taxation. It is important to report all sources of income to the tax authorities.

Gross income refers to the total amount earned before any deductions or taxes are taken out, while net income is the amount left after deducting taxes and other expenses.

Yes, there are various legal strategies to reduce taxable income, such as contributing to retirement accounts, taking advantage of tax deductions and credits, and investing in tax-efficient investments. Consulting with a tax professional can help identify the best options for your specific situation.

Generally, no. In most jurisdictions, the recipient of an inheritance or gift is not responsible for paying taxes on the received amount. However, it is advisable to consult with a tax attorney or accountant to ensure compliance with local tax laws.

No, child support payments are not considered taxable income for the recipient. Similarly, the payer cannot deduct child support payments from their taxable income.

Yes, income earned from investments, such as dividends, interest, or capital gains, must be reported on your tax return. Failure to report investment income can result in penalties and legal consequences.

Yes, rental income is generally taxable. Whether you rent out a room in your house or own multiple rental properties, the income generated must be reported and taxes paid accordingly.

Yes, alimony or spousal support payments received are considered taxable income and must be reported on your tax return. Conversely, the payer can deduct these payments from their taxable income.

It depends on the nature of the settlement. Compensation for physical injuries or illnesses is generally tax-free, while settlements related to lost wages or punitive damages may be subject to taxation. Consulting with a tax professional is recommended to determine the taxability of a specific settlement.

The taxability of Social Security benefits depends on your total income and filing status. If your combined income exceeds a certain threshold, a portion of your Social Security benefits may be subject to taxation. It is advisable to consult with a tax professional to understand the specific tax implications in your situation.