What is taxable income?

Taxable income is income that is subject to taxation by the federal, state, or local government. This includes items such as wages, salaries, tips, bonuses, dividends, and capital gains. In Washington, taxable income is defined as "all income from whatever sources derived," including income from personal services performed or derived from business, and investments. This means that any income earned by an individual, such as wages from a job or pension, interest from investments, dividends, capital gains, or income from any other source must be reported on your income tax return and is subject to taxation. In addition to taxable income, you may also have to pay taxes on non-taxable income, such as Social Security benefits and veterans’ benefits. Different tax laws also apply to various types of income; for example, capital gains may be subject to different tax rates from ordinary income such as wages and salaries. It is important to be familiar with the tax laws in Washington so you can accurately report any income you earn and make sure you are paying the right amount of taxes.

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What is taxable income?

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