SimplyCPA
Quick Sheets/REG/Individual Taxation: Gross Income

REG — Quick Sheet

Individual Taxation: Gross Income

Read time: ~5 minutes

One-minute revision

  • §61: gross income = all income from whatever source, unless specifically excluded
  • Alimony: pre-2019 agreements → taxable/deductible; post-2018 agreements → neither
  • Excluded: muni bond interest, life insurance death benefit, gifts/inheritances received, child support, employer health premiums, scholarships (tuition/materials only)
  • Gambling winnings: fully taxable; losses deductible only as itemized deduction up to winnings
  • Social Security: up to 85% taxable based on provisional income

COMMON TRAP: Watch the alimony agreement execution date — pre- vs. post-2019 rules are opposite.