Enrolled Agent Qualification | Types of Taxable Income

Hello everyone, I hope all is well, as I sit here studying for my Enrolled Agent Qualification you begin to realize there is more to Accounting and Preparing Taxes than just numbers you must know what INCOME IS TAXABLE, AND What INCOME MEANS ACCORDING TO THE IRS TAX FORM 1040. That is what this post will be about. I will do a basic run down of what Qualifies as Income for anyone interested in defining definitions. Income for Business Owners, Fund Managers, Individual W-2 employee’s, 1099 Contractors, Resident Aliens, or even Part time Aliens abroad. I will also detail, explain and provide some free resources for you as I detail INCOME detailed stated by the IRS Form 1040. Tax Advisors absolutely add value in the Board Room and in the Operations Office. This will be a-lot of fun! Let’s get the party started!

Free TAX Resources For Tax Preparers and Individuals or even Investment Firms Shops/IAR’s to Family Office Advisors.

If your not well versed in Accounting talk? Don’t worry Neither am I? However if there is one Publication that needs to be read and put on your Desk as a Employee or in your Household for the stay at home Mom we see on shows like lovely Oprah, this Publication needs to be consumbed in it’s entirety. That publication provided by the United States IRS is “Publication 17”. According to the IRS they describe Publication 17 as: “Publication 17 covers the general rules for filing a federal income tax return. It supplements the information contained in your tax form instruction booklet.” BOOK HERE

TYPES OF TAXABLE INCOME (KA-CHING!)

First of all what is Taxable Income According to the IRS? According to IRS Content on the IRS website states: Internal Revenue Service Most income is taxable unless it’s specifically exempted by law. Income can be money, property, goods or services. Even if you don’t receive a form reporting income, you should report it on your tax return.

Income is taxable when you receive it, even if you don’t cash it or use it right away. It’s considered your income even if it’s paid to someone else on your behalf.

Types of taxable income

Taxable income can include payments you receive from: EMPLOYMENT

WAGES and Employment Benefits: Included on IRS FORM W-2,

FREE TAX RESOURCES YOU NEED!

I must give a nice Thank you to all the Enrolled Agents out there and Accountants an Tax Attorneys for providing great content as I continue to build my path moving forward as a Professional earning my Enrolled Agent Qualification. There are free resources avaliable. And this short list is really helpful to other Investment, Family Office, Bankers, and Accountants, Tax Professionals or just anyone who is in the Professional Space. This resource guide is meant for you!

Publication 17 by the IRS, Instruction For Forms 1040-1040SR, Publication 501, Exemptions, Standard Deductions and Filing Info, Publication 504 by the IRS covers Divorced or Separated Individuals,IRS Publication 519 US TAX Guide for Aliens, IRS Publication 54 Tax Guide for US Citizens and Resident Aliens Abroad, Publication 552 Record Keeping for Individuals.

Tax Influencers on Youtube and Social Media you should be following and watching.

The Tax Advisor Space is a niche space and you better believe your Institution and or Small Business owned Family preparing their employment W-2 for tax day will find great content and tips to strategy to lighten and educate themselves on the Tax side we all must deal with as US Citizens. Here are a few Tax Professionals I watch, and you should watch as well!

Mark Kohler is a Tax Attorney his channel has millions of views and incredible content. I advocate watching Mark and his Guests.He does a great job instructing and I enjoy his channel.

https://www.youtube.com/@MarkJKohler

Jasmine Delucci is another Tax Attorney and Enrolled Agent I watch on Instagram. She is fantastic with her Social Strategy.

https://www.youtube.com/@taxleverage/shorts

In Conclusion

With all the Free Resources I just provided, and answering the basic question “What is taxble Income?” You should be well on your way as a Accountant Major Studying for your CPA exam, Individual Employed Tax Payer, Small Buisness Owner or even a new budding Tax Attorney or Enrolled Agent seeking resources in one location to get you moving in the right direction. This is meant to keep you curious and educate the Tax Payer on basic terms like “What is Taxable Income” and share some entertaining resources and content for you to consume as you run your business or maybe you have a question that needs answered and if you do? You will find these resources more than adequate to develop and find a answer. And with all this information I just provided? Thank you for reading. I wish you well and please do come back soon. Good Night and Good Luck! JS.

Accounting, Business Articles, Law, Tax, Trusts

Missouri Residents Deduct 100% of Capital Gains on Taxable State Income

Jefferson City Missouri, July 2025 Governor Mike Kehoe signs Bill to allow individuals to deduct One Hundred Percent of their capital gains from state income tax portion of their personal income. The Bill takes effect on August 28th, 2025. Just facts derived from Missouri Legislation. Im a Kansas City boy, so when I saw this legislation begin to take shape and be signed in the Missouri Governors Office, I had to dive in to the details happening back home. Let’s dive in.

I am a Kansas City boy so when something big happens in Kansas City, Missouri related to Investments for Tax and Law I have to write about it. I know what your thinking? What does this legislation have to do with me? Well if your in Kansas City or a Missouri Resident? You should be one hundred percent stay up to date with the things happening in the area.

The question is this? Do I have to wealthy to be included to benfit from this Tax Legislation? NO. Not at all. However if you are a wealthy and a affluential Business Owner or a local Investor. Just like our long time Kansas City Missouri Friend who is a Restauranteur and local Investor Michael Garrozzo’s. Their must be key points we can dive into that make this legislation make since for the community? Good Question: Here is what you should know Missouri Residents.

By the way if your in Kansas City, Missouri Please Visit Mr. Garozzo’s fantastic up scale basement Italian Restaurant. It’s a personal favorite of mine as a Kansas City Boy who grew up around these guys. You will love it.

Key points of this Missouri Legislation:

Individual tax exemption: Missouri residents will no longer pay state income tax on profits from the sale of assets such as stocks, bonds, real estate, and cryptocurrency.

Corporate tax trigger: The law contains a provision to extend a similar capital gains deduction to corporations once Missouri’s top individual income tax rate drops to 4.5% or lower.

Broader tax package: The capital gains cut is part of a larger tax reform bill that also includes other measures, such as sales tax exemptions for diapers and feminine hygiene products, and expanded property tax credits for seniors and individuals with disabilities.

Economic impact: The change is expected to result in a significant decrease in state revenue, with initial estimates suggesting a potential annual loss of over $100 million. This has led to debate over the bill’s potential impact on the state budget versus its ability to encourage investment and attract high-net-worth individuals.

Federal taxes still apply: The state-level exemption does not affect federal capital gains taxes, which taxpayers must still pay.

This Missouri’s legislation makes it the first U.S. state with an individual income tax to completely repeal its state-level capital gains tax.

Does this Legislation affect Individuals Offshore Asset Protection LLC’s and Trust’s?

Looking at the Facts in the Legislation? At this time no. However if you know your legalese on Offshore Asset Protection, you will know that if you use your own name in Offshore LLC or Trust Accounts a US Judge can order you to return the funds to US Soil. So this is why you must work with a small team of Attorneys, and Investment Adviser’s to use offshore Trust’s and LLC’s strategically. So if a US judge does try to order you to return the funds or assets to US Soil it will go no further than a Court Order being ignored by Belize, or the Cook Islands. Work with your Investment Adviser Professionals and Tax Attorneys for further information on this fascinating topic.

Questions and Facts:

How this affects Professionals? It does not. Only affects personal Missourians Tax Obligations at this time.

Please talk with your professional Accountant, Tax Attorney, or Professional Investment Adviser if you feel your Tax liabilities from Investments or Living or Irrevocable Trusts may need attention from this Missouri Legislation.

I am on the hunt for a local Tax Attorney and local Kansas City Missouri Accountant to give me a small thought piece about their experience using this new Legislation in thier Legal and Tax or Investment Practices. And how is this legislation affecting local Missourians. Full Published Article Scheduled for Tuesday.

Investor, Financier, Writer

Kansas City, Missouri

Category Archives: Tax

Enrolled Agent Qualification | Types of Taxable Income

TYPES OF TAXABLE INCOME (KA-CHING!)

Types of taxable income

Self-employment or side jobs

Businesses

Investments – “INVESTMENT PROFESSIONALS PAY ATTENTION!”

Benefits paid to you

Other types of income

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