HERE’S A TIP FROM THE I-R-S. HI… I’M MICHELLE… AND I WORK FOR THE INTERNAL REVENUE SERVICE. YOU PROBABLY KNOW THAT YOU MUST INCLUDE THINGS LIKE WAGES… TIPS AND INTEREST ON YOUR TAX RETURN. BUT DID YOU KNOW THAT YOU MAY HAVE TO REPORT OTHER TYPES OF MISCELLANEOUS INCOME AS WELL? THIS MAY INCLUDE BARTER EXCHANGES FOR GOODS OR SERVICES…AWARDS…PRIZES OR CONTEST WINNINGS…AND GAMBLING PROCEEDS. WHEN IT COMES TO BARTERING… THE FAIR MARKET VALUE OF GOODS OR SERVICES EXCHANGED IS TAXABLE AND MUST BE REPORTED BY BOTH PARTIES ON THEIR TAX RETURNS. ANOTHER REMINDER…GAMBLING INCOME INCLUDES WINNINGS FROM LOTTERIES…RAFFLES…HORSE RACES…POKER TOURNAMENTS…AND CASINOS. AND IT MUST BE REPORTED ON YOUR TAX RETURN…REGARDLESS OF AMOUNT. ONE MORE THING…THE CASH VALUE OF AWARDS AND PRIZES IS ALSO USUALLY TAXABLE. TO FIND OUT MORE…CHECK OUT I-R-S PUBLICATION 5-2-5…TAXABLE AND NONTAXABLE INCOME. YOU CAN FIND IT AT OUR WEBSITE…AT W-W-W-DOT-I-R-S-DOT-GOV.
