What is taxable income?

Taxable income refers to types of income that are subject to taxation, meaning they are subject to state or federal taxes. In the state of Arizona, taxable income typically consists of wages, salaries, interest, dividends, profits from business activities, rental income, royalties, etc. If you are a resident of Arizona, you have to declare all of these types of taxable income on your federal income tax return. In addition, the federal government also imposes taxes on other types of income, such as Social Security benefits, unemployment compensation, pensions, annuities, and capital gains. Certain types of income may be exempt from payment of taxes, such as gifts, inheritances, and certain types of investment earnings, depending on the circumstances. It is important to note that all types of income are assumed to be taxable until proven otherwise. Therefore, anyone with income must be aware of what type of income is taxable and when to pay taxes on it. An individual must also file a tax return, even if they are not required to pay taxes. All taxable income must be reported, regardless of whether or not the individual owes any taxes on it.

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What is taxable income?

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