Knowledge is Power!
DID YOU KNOW?
- The amount of debt forgiven by a creditor (e.g. a credit card company) is considered taxable income for the debtor (person who owes the debt)?
- Scholarship and grant funds which are used to pay for room and board can be considered taxable income to the student?
- Unemployment benefits are taxable?
- Withdrawal of pension/retirement funds before the age of 59 1/2 will result in a tax penalty of 10%?
- Making contributions into an IRA after age 70 1/2 will result in a tax penalty?
- Trading a service/product for a service/product (bartering) is a taxable transaction?
- Income from a hobby is taxable?
- Alimony is taxable income for the person receiving it?
- Bitcoin (virtual or digital currency) is taxable?
- Jury pay is taxable?
AVOID TAX DEBT
If you didn’t know these important facts, consider signing-up for Hawaii VITA’s important tax tips which will cover tax debt prevention, provide education on tax credits and much more. You can also follow Hawaii VITA’s Tax Tips on twitter @HawaiiTaxHelp