3. Alimony
In the past, alimony was reported on your tax return as income, but some people thought it could be treated as child support which is not taxable.
Since 2019, alimony or any other separate payments can no longer be deductible.
4. Forgiven loans
If you make a loan and later on it’s forgiven by a private company, or by the federal government, the money you don’t end up paying has to be reported as income. The exception is that if the money is being forgiven by a relative, then it’s considered a gift.
In addition, forgiven loans may not be taxed if they are a part of a bankruptcy, insolvency, or primary mortgage debt.
5. Scholarships or anything study related
Receiving a scholarship is great news since it financially helps students attend the school they wanted, but it’s not so great when you still have to pay taxes for it. When someone receives a generous scholarship that covers more than the tuition, fees, and books, they have to pay taxes for it.
In addition, the work-study income can also be taxed but depends on whether it’s on a state level or not. If the scholarship income recipients reach the maximum threshold for income, then it will also be taxed.
