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Other income: gambling, cancelled debt, recoveries and 1099 reporting

SEE 1 Chapter 7 · IRS outline 2A4, 2A5, 2A6, 2A8, 2A13, 2A14, 2A15

Gross income means all income from whatever source, unless the Code says otherwise. This chapter is the 'whatever source' tour: a casino jackpot, a forgiven credit card, a scholarship, a barter deal, a hobby that sells a few paintings, last year's state refund and the pile of 1099s that may or may not be right. The SEE likes each one because the answer turns on one rule. Nadia keeps a 'Schedule 1 drawer' for exactly these papers.

In this chapter

1. Gambling winnings and losses
2. Cancellation of debt and its exclusions
3. Scholarships, barter, hobbies and other income
4. Renting personal property and royalties
5. State refunds and the tax benefit rule
6. Forms 1099-MISC, NEC and K: reporting and fixing errors

This chapter has 6 lessons and 68 practice MCQs with explanations, plus flashcards and a recall sheet.

What this chapter covers

• Personal property rental
• gambling winnings and losses
• cancelled debt and Form 982
• scholarships, barter, hobby and illegal income
• royalties
• state refunds and the tax benefit rule
• Forms 1099-MISC, NEC and K

Chapter 6: Interest, dividends, constructive receipt and the kiddie tax · Chapter 8: Self-employment: Schedules C, F and SE