This topic described how to report other sources of income that VITA/TCE tax preparers may assist with, such as tax refunds and alimony.
Taxpayers who receive a refund of state or local taxes may receive Form 1099-G with their refund shown in box 2. Only taxpayers who itemized deductions may have to include all, or part, of the refund in their taxable income on line 10 of Form 1040.
Alimony or separate maintenance payments are taxable. Recipients must report this income on line 11 of Form 1040. Payers may deduct the payments on Form 1040 as an Adjustment to Income.
|
