What is taxable income?

Taxable income is the income that is subject to taxation, or which must be reported to the tax authorities and can be subject to taxation. In the state of Virginia, most types of income are considered taxable. Examples include wages and salaries, investment income, and income from self-employment. Some types of income are excluded from taxation, such as alimony and child support payments, some types of scholarships, and some types of Social Security benefits. Income that is taxable in Virginia must generally be reported to the Virginia Department of Taxation. This includes: wages and salaries paid by employers; income from self-employment; rents; royalties; dividends; capital gains; interest income; and certain other types of income. It is important to keep track of all income sources in order to ensure compliance with the law and to properly manage taxes. In Virginia, individuals are required to pay income tax on their total income, which includes both taxable and non-taxable income. Non-taxable income generally includes payments such as alimony, child support, Social Security, and certain types of scholarships. Once the taxable income has been determined, individuals must then figure out the total tax owed. Depending on the amount of taxable income, the rate of taxation can vary.

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What is taxable income?

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