J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

Chapter 2

Wages, Salary, and Other Compensation

Except for tax-free fringe benefits (Chapter 3), tax-free foreign earned income (Chapter 36) and tax-free armed forces and veterans’ benefits (Chapter 35), practically everything you receive for your work or services is taxed, whether paid in cash, property, or services. Your employer will generally report your taxable compensation on Form W-2 and other information returns, such as Form 1099-R for certain retirement payments. Do not reduce the amount you report on your return by withholdings for income taxes, Social Security taxes, union dues, or U.S. Savings Bond purchases. Your Form W-2 does not include in taxable pay your qualifying salary-reduction contributions to a retirement plan, although the amount may be shown on the form.

Attach Copy B of Form W-2 to your return; do not attach Forms 1099 unless there are withholdings.

Unemployment benefits are fully taxable. The benefits are reported to the IRS on Form 1099-G. You do not have to attach your copy of Form 1099-G to your return.

Income and expenses from self-employment are discussed in Chapter 40.

2.1 Salary and Wage Income

2.2 Constructive Receipt of Year-End Paychecks

2.3 Pay Received in Property Is Taxed

2.4 Commissions Taxable When Credited

2.5 Unemployment Benefits

2.6 Strike Pay Benefits and Penalties

2.7 Nonqualified Deferred Compensation

2.8 Did You Return Wages Received in a Prior Year?

2.9 Waiver of Executor’s and Trustee’s Commissions

2.10 Life Insurance ...