REG — Quick Sheet
Individual Taxation: Gross Income
Read time: ~5 minutes
One-minute revision
- §61: gross income = all income from whatever source, unless specifically excluded
- Alimony: pre-2019 agreements → taxable/deductible; post-2018 agreements → neither
- Excluded: muni bond interest, life insurance death benefit, gifts/inheritances received, child support, employer health premiums, scholarships (tuition/materials only)
- Gambling winnings: fully taxable; losses deductible only as itemized deduction up to winnings
- Social Security: up to 85% taxable based on provisional income
COMMON TRAP: Watch the alimony agreement execution date — pre- vs. post-2019 rules are opposite.