Artículo Department of Veterans Affairs (VA) payments.. Department of Veterans Affairs (VA) payments.

id="en_US_2025_publink1000172141"> Department of Veterans Affairs (VA) payments. Allowances paid by the VA aren’t included in your income. These allowances aren’t considered scholarship or fellowship grants. Prizes. Scholarship prizes won in a contest aren’t scholarships or fellowships if you don’t have to use the prizes for educational purposes. You must include these amounts in your income on Schedule 1 (Form 1040), line 8i, whether or not you use the amounts for educational purposes. Sharing/gig economy. A sharing economy is one in which assets are shared between individuals for a fee, usually through the Internet. For example, you rent out your car when you don’t need it, or you share your wi-fi account for a fee. A gig economy is one in which a short-term contract or freelance work is the norm, as opposed to a permanent job. For example, you drive for a ride-sharing service, or work as a fitness trainer, babysitter, or tutor. Generally, if you have income from sharing economy transactions, or you did gig work, you must include all income received whether you received a Form 1099-K, Payment Card and Third-Party Network Transactions, or not. See the Instructions for Schedule C (Form 1040) and the Instructions for Schedule SE (Form 1040). State tax payments. Do not include payments on your tax return made by states under legislatively provided social benefit programs for the promotion of the general welfare. To qualify for the general welfare exclusion, state payments must be paid from a governmental fund, be for the promotion of general welfare (that is, based on the need of the individual or family receiving such payments), and not represent compensation for services. Stolen property. If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year. Tips. You may be eligible to take a deduction for qualified tips paid to you in 2025. You can’t deduct more than $25,000 of those tips. Your deduction will be limited if your modified adjusted gross income is more than $150,000 ($300,000 if married filing jointly). To be eligible, you and/or your spouse who received the tips must have a valid SSN. If you are married, you must file a joint return. Transporting school children. Don’t include in your income a school board mileage allowance for taking children to and from school if you aren’t in the business of taking children to school. You can’t deduct expenses for providing this transportation. Union benefits and dues. Amounts deducted from your pay for union dues, assessments, contributions, or other payments to a union can’t be excluded from your income. Strike and lockout benefits. Benefits paid to you by a union as strike or lockout benefits, including both cash and the fair market value of other property, are usually included in your income as compensation. You can exclude these benefits from your income only when the facts clearly show that the union intended them as gifts to you. Utility rebates. If you’re a customer of an electric utility company and you participate in the utility's energy conservation program, you may receive on your monthly electric bill either: A reduction in the purchase price of electricity furnished to you (rate reduction), or A nonrefundable credit against the purchase price of the electricity. The amount of the rate reduction or nonrefundable credit isn’t included in your income. 9. Individual Retirement Arrangements (IRAs) What’s New Modified adjusted gross income (AGI) limit for traditional IRA contributions. For 2025, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $126,000 but less than $146,000 for a married couple filing a joint return or a qualifying surviving spouse, More than $79,000 but less than $89,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return.