This chapter discusses various types of payments you may receive; some are taxable and others are not taxable. Examples of taxable items include:
- Taxable state tax refunds, which are reported on Line 10 of Form 1040.
- Prizes, gambling winnings, and awards, which are reported on Line 21 of Form 1040. There are several exceptions, including the new exclusion for debts discharged in a mortgage restructuring or foreclosure (11.8).
- Cancellations of debt, which are reported on Line 21 of Form 1040.
- Your share of partnership, S corporation, trust, or estate income or loss, which is reported ...