Bloomberg Tax
Jan. 14, 2022, 9:45 AM

A Surprising Look at What Income is Taxable—And What Isn’t

Kelly Phillips Erb
Kelly Phillips Erb

Twitter lit up recently over a post reminding taxpayers to declare income from illegal activities. Some users couldn’t believe that it was real. But the declaration—which is not new—can be found in IRS Publication 17, which notes that “Income from illegal activities, such as money from dealing illegal drugs, must be included in your income...”

You’ll find the same language in IRS Publication 525.

The authority for the statement is found in tax code Section 61, which makes clear that “gross income means all income from whatever source derived” unless it’s otherwise excluded. That’s a pretty high ...

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