Tax season is the biggest headache Americans can deal with, well besides taxes themselves. When we are not worrying about filling all of the paperwork that needs to be done perfectly and in on time, we worry about having to pay them.
In the U.S. we pay taxes for almost everything, but there are some things you wouldn’t expect to pay taxes for. Here’s a list of the most SHOCKING things that are taxable:
1. Traded goods
Seems uncommon right? After all, why would you need to pay a tax if no money was exchanged at all?! Depending on the value of the items, because if they would bring any financial benefit to the giver, then it’s subjected to taxes.
For example, if you ask your friend a favor such as realizing a website for you from scratch, then you have to report the value of the service on your tax return. If it’s something with no worth and it’s simple bargaining, it’s good to go.
2. Large gifts
Normally gifts are NEVER taxed, however, as always, there are some exceptions. In this case, monetary gifts of over $15,000 given to children are subjected to taxes.