Introduction

If you earn a living through labor, your salary is taxable, and part of your investment income probably is too. However, that is not where the Internal Revenue Service ends. Whether your gains came from luck, diligence, or dishonesty, you almost certainly have to pay taxes on each one. To be sure you don't overlook anything when it comes time to submit your return, look over our list of 10 strange objects that are taxed. Incorporate the following into your upcoming tax return. Here you’ll learn about 10 taxable items that may surprise you.

10 Taxable Items That May Surprise You

• Even if your fantasy squad is perfect, you still have to report any gains to the IRS if you play fantasy sports. If you received a prize of $600 or more from a for-profit online casino, a 1099-MISC should be sent to you. An additional copy of this form will be given to the Internal Revenue Service. Even if the winnings came from a friendly, amateur league between friends, fantasy sports winnings are still subject to taxation.
• Thousands of young, healthy women each year donate their eggs to aid infertile couples in getting pregnant. The typical cost of their services, according to Egg Donation Inc., a company that matches intended parents with qualified donors, is between $5,000 and $10,000. These amounts should be reported as taxable income to the IRS. The IRS and the donor typically get a Form 1099 from reproductive clinics as payment verification.
• If you were to get it, you would have to pay taxes on the $1.08 million value of the Nobel Prize in 2014. The Pulitzer Prizes for journalism and any other awards granted to appreciate your work are taxable income. Donating to a nonprofit recognized as a tax-exempt organization is the first step in avoiding paying taxes. In 2009, when President Obama received the Nobel Peace Prize, he did just that. You will probably have to pay taxes on a portion of your income because the IRS only permits you to deduct 50% of your adjusted gross income for charitable contributions.
• You will likely be compelled to pay taxes on the fair market value of those clubs if your employer gives you a brand-new set of golf clubs as a thank-you (or as an incentive to decline a job offer from a competitor). The Supreme Court said more than 50 years ago that a gift from an employer to an employee must be given out of "detached and disinterested kindness" for it to be exempt from the employee's taxable income. The court decided that presents given to workers as gratitude for their labor do not satisfy this condition. Additionally, business promotional gifts fall short.
• The state and local taxes imposed on unemployment benefits vary significantly between jurisdictions. Although the federal government views unemployment compensation as a taxable income, not all states do. You can choose to have taxes deducted from each payment of unemployment benefits rather than deferring payment until the end of the fiscal year.
• Any income the Airbnb host receives from renting their house or room for more than 15 days is subject to taxation. As the personal rental industry becomes more well-known, this law will probably be applied more strictly.
• Even if they are under $500, bonuses and other gifts from your job are taxable. What about other gifts, though? An engraved name tag is never preferable to a season ticket to the neighborhood basketball team.
• Alimony used to be regarded as taxable cash. Some believed it to be exempt from taxes in the same manner that child support is. Alimony or separate maintenance payments are not eligible for an income tax deduction by either the paying or receiving spouse. The Tax Cuts and Jobs Act was used to pass these amendments (TCJA). Payments that have already been paid won't be impacted.
• The amount you don't have to pay back because of a debt's forgiveness, whether from a private organization like a bank or the federal government, must be recorded as income. Many people who choose debt settlement are unaware of this, which results in significant financial hardship for them.
• The law requires disclosure of income from illegal activity. This includes activities like extortion and drug trafficking. This is arguably the tax regulation that gets the least attention.

Conclusion

Most of these circumstances are probably ones that you haven't experienced. You have undoubtedly met at least one, and you never know which tax error will lead to a thorough audit. Ignorance of the law is never a valid excuse, and this is particularly true during tax season. Don't jeopardize your financial security in the future to save a few pennies today.