this post was submitted on 22 Feb 2024
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Lemmy Shitpost

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[–] Wogi@lemmy.world 16 points 10 months ago* (last edited 10 months ago) (1 children)

Literally yes. In fact about half of the lines 8 are to report losses.

Income is any income, you pay a sales tax when you buy goods, the merchant pays income tax on those same dollars. Or they would if somehow during a record profit year they actually made no money.

[–] SpaceNoodle@lemmy.world -2 points 10 months ago (1 children)

No. Insurance payouts are not overall taxable. You also cannot claim depreciation on your personal vehicle, and if you lose property, the IRS doesn't give a shit.

[–] Wogi@lemmy.world 2 points 10 months ago (1 children)

Certain insurance payouts, specifically those that exceed your premiums, are taxable. Lump sum payments generally aren't unless it's a benefit provided by your employer in excess of 50k, but annuities are taxable. As would be any interest you collect on those policies.

Depreciation on a vehicle you use to generate income is deductable, as would be say, depreciation on a home you rent out. And if you rent out rooms in your personal home but don't run a business renting out property, that income needs to be reported too.

[–] SpaceNoodle@lemmy.world -2 points 10 months ago* (last edited 10 months ago) (1 children)

This discussion has only been about personal taxes, so stop bringing up business taxation.

Are you talking solely about life insurance? Because that is one very specific thing, and payouts from that are not in the same category at all as any other typical insurance.

[–] Wogi@lemmy.world 0 points 10 months ago

Which is why there's a line for other undeclared income.

The whole conversation is about line 8 not exclusively being for crimes.