Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International


Types of Income

Taxable Income

Taxable income is any income that is subject to federal income tax, whether earned or unearned:

  • Earned income is any income received for work, such as wages or business/self employment income
  • Unearned income is any income produced by investments, such as interest on savings, dividends on stocks, or rental income

All taxable income must be reported on a tax return unless the amount is so small that the individual is not required to file a return. Earned and unearned taxable income is reported in the Income section of Form 1040; the total Income is entered on line 22 as total income.

Review the Volunteer Resource Guide, Income tab, for examples of taxable income.

Form 1040, line for wages, salaries, tips, etc. is highlighted.
Examples of Taxable Income

Examples of Taxable Income