J.K. Lasser's Your Income Tax 2022

CHAPTER 11Other Income

This chapter discusses various types of payments you may receive; some are taxable and others are not taxable. Examples of taxable items include:

• State or local tax refunds if the tax was claimed as an itemized deduction and the refunded amount provided a tax benefit (11.5).
• Prizes, gambling winnings, and awards ((11.2)–11.3).
• Cancellations of debt, but there are several exceptions, such as for debts discharged in a bankruptcy proceeding or while you are insolvent (11.8).
• Your share of partnership, S corporation, trust, or estate income or loss, as reported on Schedules K-1 ((11.9)–11.15).

Examples of nontaxable items include:

• Gifts and inheritances (11.4).
• Compensatory damages for physical injury or sickness (11.7).
• Life insurance proceeds (11.18).
• Economic impact payment (25.19)

• 11.1 Prizes and Awards
• 11.2 Lottery and Sweepstake Winnings
• 11.3 Gambling Winnings and Losses
• 11.4 Gifts and Inheritances
• 11.5 Refunds of State and Local Tax Deductions
• 11.6 Other Recovered Deductions
• 11.7 How Legal Damages Are Taxed
• 11.8 Cancellation of Debts You Owe
• 11.9 Schedule K-1
• 11.10 How Partners Report Partnership Profit and Loss
• 11.11 When a Partner Reports Income or Loss
• 11.12 Partnership Loss Limitations
• 11.13 Tax Audits of Partnerships
• 11.14 Stockholder Reporting of S Corporation Income or Loss
• 11.15 How Beneficiaries Report Estate or Trust Income
• 11.16 Reporting Income in Respect of a Decedent (IRD)
• 11.17 Deduction for Estate Tax Attributable to IRD
• 11.18 ...