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Earned Taxable Compensation

by Kristin P. Sinclair – A Accu Tax – March 21, 2018

Medicare Professional Insurance Kristin Sinclair

The IRS describes taxable compensation in general terms as what you earn from working. This specifically includes wages, salaries, tips, professional fees, bonuses, and other amounts you receive for personal services rendered. The IRS considers as taxable compensation all amounts properly shown on your W-2 in Box 1, provided that amount is not reduced by any amount entered in Box 11. This does not include unearned income, which may also be taxable. For IRS purposes, scholarship and fellowship payments are taxable compensation only if shown on Form W-2 in Box 1. Consult your tax advisor and/or www.IRS.gov for more information.

 

Updated in Rock Hill SC and Charlotte NC
by Kristin P. Sinclair A Accu Tax
(803)329-0609 December 5, 2017

 

KPS: More information is available at IRS.gov.
See Publication 590-A and Publication 590-B.

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