Taxable income is any income that is subject to federal income tax. All taxable income must be reported on a tax return unless the amount is so small that the individual is not required to file a return.

To begin with, most employment compensation is taxable, including:

• Wages, salaries, bonuses, and commissions
  
  
• Certain fringe benefits
  
  
• Tips and compensation for personal services

	Generally, wages and other employment income are included in Forms W-2 and prepared by the employer.