Which of the following is considered taxable income?
1- A 1099K form from Paypal for concert tickets you sold to someone else at cost.
2- Income from dog sitting for which you received no 1099 form.
3- Inherited stocks or bonds that have tripled in value.
4- Cancelled mortgage debt on a home that you lived in.
5- Health insurance premiums that were paid for by your employer
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1- Selling things via payment apps could be taxable, but since you sold the tickets at cost, there is no income. The transaction still needs to be reported on the tax return, and transaction fees could actually produce a loss for the seller.
2- Any service such as this is considered self-employed income and is supposed to be reported on Schedule C, even if no 1099 is received. This IS taxable income.
3- Anything that is inherited is tax-free to the recipient. The fact that it rose in value doesn't matter. But if they sell it later on, taxable income could result if the value goes up while the recipient owns it.
4- Any cancelled debt is usually considered taxable income. If through a bankruptcy or if the person is insolvent, some or all of that cancelled debt income can be excluded. Mortgage debt that is cancelled has been treated differently in the past few years. Cancelled mortgage debt is tax-free on principal residences only through the end of 2025 as the laws now stand. Unless congress acts, it will become taxable again in 2026.
5- This is one of the biggest employee benefits there is and it is all non-taxable. Many fringe benefits are non-taxable. If an employer pays for part of the health insurance premiums, it is not considered taxable income. If however, the employer doesn't pay anything and the employee has to pay for health insurance privately, it is currently non-deductible.
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