INCOME INCLUSIONS & EXCLUSIONS
According to the IRS Form 1040 Definition (AGI Calculation Method) the following are income inclusions
and exclusions:
Inclusions:
1) Wages, salaries, tips, etc.
2) Taxable interest.
3) Dividends.
4) Taxable refunds, credits or offsets of State and local income taxes. There are some exceptions ‐
refer to Form 1040 instructions.
5) Alimony (or separate maintenance payments) received.
6) Business income (or loss).
7) Capital gain (or loss).
8) Other gains (or losses) (i.e., assets used in a trade or business that were exchanged or sold).
9) Taxable amount of individual retirement account (IRA) distributions. (Includes simplified
employee pension [SEP] and savings incentive match plan for employees [SIMPLE] IRA.)
10) Taxable amount of pension and annuity payments.
11) Rental real estate, royalties, partnerships, S corporations, trusts, etc.
12) Farm income (or loss).
13) Unemployment compensation payments.
14) Taxable amount of Social Security benefits.
15) Other income. (Includes: prizes and awards; gambling, lottery or raffle winnings; jury duty fees;
Alaska Permanent fund dividends; reimbursements for amounts deducted in previous years;
income from the rental of property if not in the business of renting such property; and income
from an activity not engaged in for profit).
Exclusions
1) Child support.
2) Money or property that was inherited, willed or given as a gift.
3) Life insurance proceeds received as a result of someone's death