Page 25 - Virtual Currencies

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Fileid: … tions/p525/2022/a/xml/cycle08/source
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
116-260.) When a taxpayer who does not factu- Account. You can view the amount you owe, re- Other Income, later. Also, see Pub. 590-A for
ally satisfy the conditions for a qualifying for- view 18 months of payment history, access on- more information.
giveness causes its lender to forgive the PPP line payment options, and create or modify an Taxpayer identification number (TIN). A TIN
loan by inaccurately representing that the tax- online payment agreement. You can also ac- is your social security number (SSN), individual
payer satisfies them, the taxpayer may not ex- cess your tax records online. taxpayer identification number (ITIN), adoption
clude the amount of the forgiven loan from Achieving a Better Life Experience (ABLE) taxpayer identification number (ATIN), or em-
gross income under 15 U.S.C. section 636m(i) account. This is a type of savings account for ployer identification number (EIN).
or section 276(b)(1) of the COVID-related Tax individuals with disabilities and their families. Terrorist attacks. You can exclude from in-
Relief Act of 2020. Distributions are tax free if used to pay the ben- come certain disaster assistance, disability, and
Emergency financial aid grants. Certain eficiary's qualified disability expenses. See Pub. death payments received as a result of a terro-
emergency financial aid grants under the 907 for more information. rist or military action. For more information, see
CARES Act are excluded from the income of Sickness and Injury Benefits, later; Pub. 3920,
college and university students, effective for Certain amounts received by wrongfully in- Tax Relief for Victims of Terrorist Attacks; and
grants made after March 26, 2020. (See P.L. carcerated individuals. Certain amounts you Pub. 907, Tax Highlights for Persons With Disa-
116-136 and P.L. 116-260.) receive due to a wrongful incarceration may be bilities.
excluded from gross income. See IRS.gov/
Other loan forgiveness under the CARES Individuals/Wrongful-Incarceration-FAQs for Photographs of missing children. The Inter-
Act. Gross income does not include any more information. nal Revenue Service is a proud partner with the
amount arising from the forgiveness of certain National Center for Missing & Exploited
loans, emergency Economic Injury Disaster Foreign income. If you're a U.S. citizen or res- Children® (NCMEC). Photographs of missing
Loan (EIDL) grants, and certain loan repayment ident alien, you must report income from sour- children selected by the Center may appear in
assistance, each as provided by the CARES ces outside the United States (foreign income) this publication on pages that would otherwise
Act, effective for tax years ending after March on your tax return unless it’s exempt by U.S. be blank. You can help bring these children
27, 2020. (See P.L. 116-136 and P.L. 116-260.) law. This is true whether you reside inside or home by looking at the photographs and calling
Exclusion of income for volunteer firefight- outside the United States and whether or not 1-800-THE-LOST (1-800-843-5678) if you rec-
you receive a Form W-2, Wage and Tax State-
ers and emergency medical responders. If ment, or Form 1099 from the foreign payer. This ognize a child.
you are a volunteer firefighter or emergency applies to earned income (such as wages and
medical responder, you may be able to exclude tips) as well as unearned income (such as inter- Introduction
from gross income certain rebates or reductions est, dividends, capital gains, pensions, rents,
of state or local property or income taxes and and royalties). You can receive income in the form of money,
up to $50 per month provided by a state or local property, or services. This publication dis-
government. For more information, see Volun- If you reside outside the United States, you cusses many kinds of income and explains
teer firefighters and emergency medical res- may be able to exclude part or all of your for- whether they are taxable or nontaxable. It in-
ponders. eign source earned income. For details, see cludes discussions on employee wages and
Repeal of deduction for alimony payments Pub. 54, Tax Guide for U.S. Citizens and Resi- fringe benefits, and income from bartering, part-
dent Aliens Abroad.
and corresponding inclusion in gross in- nerships, S corporations, and royalties. It also
come. Alimony received will no longer be in- Olympic and Paralympic medals and United includes information on disability pensions, life
cluded in your income if you entered into a di- States Olympic Committee (USOC) prize insurance proceeds, and welfare and other
vorce or separation agreement on or before money. If you receive Olympic and Paralympic public assistance benefits. Check the index for
December 31, 2018, and the agreement is medals and USOC prize money, the value of the location of a specific subject.
changed after December 31, 2018, to expressly the medals and the amount of the prize money In most cases, an amount included in your
provide that alimony received isn't included in may be nontaxable. See the Instructions for income is taxable unless it is specifically ex-
your income. Alimony received will also not be Schedule 1 (Form 1040), line 8m, at IRS.gov/ empted by law. Income that is taxable must be
included in income if a divorce or separation Form1040 for more information. reported on your return and is subject to tax. In-
agreement is entered into after December 31, Public safety officers. A spouse, former come that is nontaxable may have to be shown
2018. For more information, see Pub. 504. spouse, and child of a public safety officer killed on your tax return but isn’t taxable.
Forms 1040A and 1040EZ no longer availa- in the line of duty can exclude from gross in- Constructively received income. You are
ble. Forms 1040A and 1040EZ aren't available come survivor benefits received from a govern- generally taxed on income that is available to
to file your 2022 taxes. If you used one of these mental section 401(a) plan attributable to the of- you, regardless of whether it is actually in your
forms in the past, you’ll now file Form 1040 or ficer's service. See section 101(h). possession.
1040-SR. A public safety officer that's permanently A valid check that you received or that was
Qualified equity grants. For tax years begin- and totally disabled or killed in the line of duty made available to you before the end of the tax
ning after 2017, certain qualified employees can and a surviving spouse or child can exclude year is considered income constructively re-
make a new election to defer income taxation from income death or disability benefits re- ceived in that year, even if you don’t cash the
for up to 5 years for the qualified stocks re- ceived from the federal Bureau of Justice Assis- check or deposit it to your account until the next
ceived. See Qualified Equity Grants under Em- tance or death benefits paid by a state program. year. For example, if the postal service tries to
ployee Compensation, later. See section 104(a)(6). deliver a check to you on the last day of the tax
Suspension of qualified bicycle commuting Qualified Medicaid waiver payments. Cer- year but you aren’t at home to receive it, you
reimbursement exclusion. For tax years be- tain payments you receive for providing care to must include the amount in your income for that
ginning after 2017, reimbursement you receive an eligible individual in your home under a tax year. If the check was mailed so that it
from your employer for the purchase, repair, or state's Medicaid waiver program may be exclu- couldn’t possibly reach you until after the end of
storage of a bicycle you regularly use for travel ded from your income under Notice 2014-7. the tax year, and you otherwise couldn’t get the
between your residence and place of employ- See also Instructions for Schedule 1 (Form funds before the end of the year, you include
ment must be included in your gross income. 1040), line 8s. the amount in your income for the next tax year.
Unemployment compensation. If you re- Qualified settlement income. If you're a Assignment of income. Income received
ceived unemployment compensation but did qualified taxpayer, you can contribute all or part by an agent for you is income you constructively
not receive Form 1099-G, Certain Government of your qualified settlement income, up to received in the year the agent received it. If you
Payments, through the mail, you may need to $100,000, to an eligible retirement plan, includ- agree by contract that a third party is to receive
access your information through your state’s ing an IRA. Contributions to eligible retirement income for you, you must include the amount in
website to get your electronic Form 1099-G. plans, other than a Roth IRA or a designated your income when the third party receives it.
Access your online account. You must au- Roth contribution, reduce the qualified settle-
thenticate your identity. To securely log in to ment income that you must include in income. Example 1. You and your employer agree
your federal tax account, go to IRS.gov/ See Exxon Valdez settlement income under that part of your salary is to be paid directly to
Page 2 Publication 525 (2022)