J.K. Lasser's Your Income Tax 2023, 2nd Edition

CHAPTER 2Wages, Salary, and Other Compensation

2.1	Salary and Wage Income	40
2.2	Constructive Receipt of Year‐End Paychecks	41
2.3	Pay Received in Property Is Taxed	42
2.4	Commissions Taxable When Credited	42
2.5	Unemployment Benefits	43
2.6	Strike Pay Benefits and Penalties	44
2.7	Nonqualified Deferred Compensation	44
2.8	Did You Return Wages Received in a Prior Year?	45
2.9	Waiver of Executor's and Trustee's Commissions	46
2.10	Life Insurance Benefits	46
2.11	Educational Benefits for Employees' Children	47
2.12	Sick Pay Is Taxable	48
2.13	Workers' Compensation Is Tax Free	48
2.14	Disability Pay and Pensions	49
2.15	Stock Appreciation Rights (SARs)	51
2.16	Stock Options	51
2.17	Election to Defer Income on Qualified Equity Grants from Private Companies (Section 83(i) election)	54
2.18	Restricted Stock	54

Except for tax‐free fringe benefits (Chapter 3), tax‐free foreign earned income (Chapter 36) and tax‐free armed forces and veterans' benefits (Chapter 35), practically everything you receive for your work or services is taxed, whether paid in cash, property, or services. Your employer will generally report your taxable compensation on Form W‐2 and other information returns, such as Form 1099‐R for certain retirement payments. Do not reduce the amount you report as taxable compensation on your return by withholdings for income taxes, Social Security taxes, union dues, or U.S. Savings Bond purchases. Your Form W‐2 excludes from taxable ...