Other Income

Most categories of income (for example, wages, dividends, and interest) are reported on specified lines of Form 1040 (PDF). Less common types of income are reported in a general category called "other income". Please refer to the Form 1040 Instructions for information on where to report this income. You can attach a statement to your return with additional information.

The following are examples of income to report on your Form 1040.

• Gambling winnings (lotteries, raffles), etc. Report the full amount received, not the net amount. If you itemize, report gambling losses on Schedule A, but not for an amount more than winnings claimed. You cannot otherwise deduct gambling losses.
• Prizes and awards received other than in connection with your trade or business. A prize or award that is received in connection with your trade or business is reported on Form 1040, Schedule C (PDF) or Form 1040, Schedule C-EZ (PDF), (if you are self–employed), or elsewhere on Form 1040 (if you are an employee).
• Fees for jury duty. (If you turn over all or a portion to your employer who continued to pay you while you served, show this reduction of the fee on line 36 and write "jury pay" on the dotted line.)
• Fees for being an executor, administrator or personal representative of an estate, unless you are engaged in the trade or business of being a professional executor, administrator, or personal representative. Fees for a nonprofessional are reported as other income on Form 1040 unless (1) the estate requires extensive managerial activities on your part for a long period of time and the activities may rise to the level of a trade or business, or (2) the estate includes an active trade or business in which you actively participate and the fee is for the operation of that trade or business. Fees for a professional executor, administrator, or personal representative (one who is engaged in the trade or business) are reported on Schedule C.
• Canceled debts. If a debt you owe is canceled or forgiven, other than as a gift or bequest, you may have to include it in income. Refer to Publication 525, Taxable and Nontaxable Income, for exceptions and exclusions. You may also refer to Publication 908 (PDF), Bankruptcy Tax Guide.
• Alaska Permanent Fund Dividends.
• Qualified state tuition program earnings if greater than the beneficiary's adjusted qualified education expenses. Refer to Publication 970, Tax Benefits for Education.
• Income from rental of personal property (income from the rental of real estate is reported elsewhere on Form 1040 and Schedule E).
• Income from an activity not engaged in for profit, such as a hobby. Deductions relating to the activity cannot exceed the income from the activity and may be claimed only as itemized deductions on Schedule A.
• Damages received for the following: personal nonphysical injuries or sickness; backpay/lost profits (in most cases); and punitive damages relating to any injury or illness. Damages for emotional distress in a case not involving personal physical injury, except to the extent the damages are paid for medical care. (Interest on any award of damages is includable as interest income).
• Reimbursements or other amounts received for items deducted in an earlier year, such as medical expenses, real estate taxes, or home mortgage interest. Refer to "Recoveries" in Publication 525, Taxable and Nontaxable Income, for details on how to figure the amount to report.
• Loss on certain corrective distributions of excess deferrals resulting from contributions made to a qualified retirement plan. Refer to Publication 525, Taxable and Nontaxable Income under Employee Compensation — Retirement Plan Contributions.

Note: Income reported on Form 1099-MISC (PDF) in Box 7 as non-employee compensation IS NOT included on Form 1040 as other income.

For more information, refer to Form 1040 Instructions, or Publication 17.

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