Articles Index

Tax Treatement of Credit Card Rewards and Frequent Flyer Miles

Rewards and discounts issued by credit card companies and frequent flyer miles are not considered taxable income. However such rewards and discounts can reduce the cost of a tax-deductible expense.

Canceled Debt & Mortgage Forgiveness

Anytime a lender cancels, or forgives, your debt, that is considered income to the debtor. Canceled debt on a main home may be tax-free, providing welcome tax relief to people who have lost their homes through foreclosure.

IRA Withdrawals

How to report IRA withdrawals on Form 1040 Line 15. Tips for figuring and reporting non-taxable and taxable Individual Retirement Account withdrawals, distributions, and rollovers.

Preparing IRS Form 1040 Schedule E

Shareholders receiving a Schedule K-1 must report the amounts on IRS Form 1040 Schedule E, page 2. Generally speaking, ordinary net business income or loss is reported on Schedule E. Other income items are reported in the appropriate part of the 1040 tax return.

Partnership Income

Partners receiving a Schedule K-1 must report the amounts on IRS Form 1040 Schedule E, page 2. Generally speaking, ordinary net business income or loss is reported on Schedule E. Other income items are reported in the appropriate part of the 1040 tax return.