"Other" Taxable Income

All income that you received last year is taxable, and this includes income from hobbies, gambling, tips, etc. This income must be reported on your tax return as other or miscellaneous taxable income.


This page:

  • Describes the most common types of miscellaneous income

  • Explains IRS tax form 1099-B

  • Explains how to report your other miscellaneous taxable income

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Reporting your miscellaneous taxable income

Uncommon sources of taxable income are entered together on your tax return under the category of "miscellaneous income". Here is a list of possible earnings you may need to report in this section:

  • Hobby income
  • Gambling winnings
  • Prizes
  • Awards
  • Jury duty fees
  • Trusts and estates execution fees
  • Barter income
  • Election judge's fees

Since there are so many different types of taxable income included under miscellaneous income, there are several forms you may receive in the mail.

However, most of these forms are not required to be sent, so even if you don't receive one, but you know that you've earned taxable income not reported on your W-2, you should still include it on your tax return.

You'll want to be really careful when you report your miscellaneous taxable income. Any mistakes could cost you dearly, should you get audited, especially if you purposefully fail to include any taxable income on your return.

IRS tax form 1099-B and your hobby or barter income

IRS tax form 1099-B records barter income. It is often difficult to distinguish the difference between barter or hobby income and self-employment income.

For tax purposes, barter income, which is either the exchange of property and services for other property or services or reimbursement for referrals, can be included as other taxable income or as self-employment income. Either way, it is fully taxable.

Income produced by a hobby is considered other taxable income unless it has consistently been profitable over the past few years. After three years of yielding an income, your hobby is considered a business and you are required to report it as self-employment income.

Otherwise, include the gross profit your hobby earned under the "miscellaneous taxable income" category. Remember, you may deduct the losses or expenses of your hobby as a miscellaneous itemized tax deduction as long as you report hobby income and pay the required taxes. Hobby losses can be claimed as a deduction up to the amount you are claiming as taxable income.

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Reporting gambling winnings and losses to the IRS

The gross amount of your gambling winnings is fully taxable. All winnings should be included as "other taxable income" and you should pay taxes on them.

However, some gambling winnings have the tax withheld already. If this is the case, you will receive a W-2G. The amount you have already paid in taxes will be recorded in Box 2 and should be added to the tax withheld from your wages and salaries (Box 2 on your W-2 form) and entered as "federal income tax withheld".

Like hobby expenses, gambling losses can be deducted as an itemized deduction, but your deduction for losses cannot exceed your winnings.

Other forms and taxable income

Other forms you may receive are:

Form 1099-MISC, which records other taxable income you may receive for duties you perform as a notary public or for commissions

Form 1099-G, which records program earning for qualified state tuition and Alaska Permanent Fund distributions.

Any foreign income you receive should also be reported under "miscellaneous taxable income".

Unreported tip information should be included under this income section, if they are more than $20 per month and, Form 4137 needs to be completed. However, if the unreported tips are under $20 per month, include the amount in your wage total, ignore the entry under miscellaneous taxable income and do not complete Form 4137.

Related IRS publications

You can get more information about miscellaneous earned taxable income directly from the IRS, in the form of Publication 525.

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