We all are aware of the Form W-2, the pay slip given by our employer. It is not just a pay slip, but a very important document in terms of taxation. Wages and salaries comprise a major portion of your taxable income if you are employed. Hence, for the IRS to calculate your taxable income your Form W-2 has to be submitted.
Wages and Salaries and tips to control the taxability
Taxation for the Senior Citizens
Our government provides in-numerous plans for the benefit of their citizens at the dusk of their life, but the preparation starts from the early age. You have to start saving in various programs to reap the benefits later. While laying some money aside, if you get deductions or credits on the savings then you are bound to be taxed for the distributions you receive at maturity of those programs.
Other Taxable Incomes and related Schedules of Form 1040
Wages, business income, interest, dividends, capital gains are not the only incomes that are taxed by the IRS. If you thought that these being the major forms of income, only these get taxed, then you are wrong. It is just a fraction of where the IRS can put under their axe.
Interest and Dividend Income
The IRS has set certain critical rules regarding the taxability of interest and dividend income of a taxpayer. Some types of incomes are taxable both at state and federal level. Some are taxable only at either of the level. Some are deductible at both the levels while some at either level.