What are the different types of income?

Employment

You receive income (usually in the form of paychecks or W-2s) from an organization that you work for, but don't own.

Independent Contractor

You have temporary employment agreements and a US federal tax return Form 1099 is issued to you. Income is usually reported on Schedule C of US federal tax returns.

Military Pay

You receive a paycheck for currently serving in the military. Military pension/retirement income should be added as pension income, not as military pay.

Rental

You own a property and receive rental income from this property. Income is reported on Schedule E of US federal tax returns.

Social Security

You receive benefits from the US Social Security Administration.

Pension/retirement

You receive income from a defined pension, retirement, IRA, or 401k program.

Self-employment

You own a business or receive income from a business that you own 25% of or more. Income is usually reported on Schedule C and/or Schedule E of US federal tax returns.

Farm Income

You own and/or rent real estate upon which you conduct farming activity. You may also own farm land that you rent to others. This income is usually reported on Schedule F or Form 4835 of the U.S. federal tax returns. It may also be reported through Schedule E of the U.S. federal tax returns. You may also reported it on a Form 1120 if the farm is structured as a C Corporation. If you have Farm Income enter this income under Business/Self Employment.

Other

You receive income from any other source not mentioned above (such as disability, alimony, child support, trust, dividends, or interest).

You aren’t required to include alimony, child support, or separate maintenance income unless you want it considered as a basis for repaying a loan.