IRS Issues New Alert on 5 Things You Must Declare on Your Taxes This Year
– Cryptocurrency Transactions
If you've bought, sold, or traded cryptocurrency, the IRS requires you to report any gains or losses. This includes transactions made through platforms like Coinbase or Binance.
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Gig Economy Income
Income earned through gig economy platforms like Uber, Lyft, or Etsy must be reported. Whether you receive a 1099 form or not, all income from freelancing or side gigs is taxable.
– Unemployment Benefits
Unemployment benefits are considered taxable income. If you received unemployment compensation, you must declare it, even if it was due to the pandemic.
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Earned Interest and Dividends
Any interest earned from savings accounts, investments, or dividends must be declared. This includes taxable interest from bank accounts or stock dividends, even if it's only a small amount.
Online Sales and Transactions
If you sold items online for profit through platforms like eBay or Etsy, you may need to report that income.
Social Security Benefits
If your total income exceeds a certain threshold, part of your Social Security benefits may be taxable. This includes retirement, disability, or survivor benefits.
Income from Rental Properties
If you earn rental income from properties, including vacation rentals or Airbnb, it must be reported.
1. Canceled Debt
If a lender forgives or cancels a debt, that amount is typically considered taxable income. This includes credit card debt, student loans, or mortgage debt relief that may need to be reported.