In 2025, long-term capital gains are taxed at 0%, 15%, or 20% based on income, while short-term gains are taxed as ordinary income up to 37%.
Income Reporting
How do I report rental income on my tax return?
Report rental income and expenses on Schedule E (Form 1040). Include rent, deposits kept, and deductible costs like mortgage interest and depreciation.
How do I report stock options or restricted stock units (RSUs)?
Report RSU and stock option income on Form W-2; sales go on Form 8949 and Schedule D. ISOs may also require AMT reporting on Form 6251.
How do I report cryptocurrency transactions on my tax return?
Report cryptocurrency sales, trades, or income on IRS Form 8949 and Schedule D; mining and staking rewards go on Schedule 1 or Schedule C as income.
Do I need to pay taxes on an inheritance received in 2025?
No, you don’t pay federal tax on an inheritance in 2025, but income from inherited assets or state-level taxes may apply depending on your location.
Do I need to report income from foreign countries?
Yes, U.S. citizens and resident aliens must report all worldwide income, including foreign income, on their U.S. tax return, unless legally exempt.
Are life insurance payouts taxable?
Life insurance payouts are generally not taxable, but interest, installment payments, employer-owned policies, and some transfers may trigger taxes.
Do I need to report interest earned on savings accounts?
Yes, you must report all interest earned on savings accounts as income on your tax return, even if you don’t receive a 1099-INT.
Is alimony received in 2025 taxable?
Alimony received in 2025 is taxable only if your divorce agreement was executed before 2019 and hasn’t been modified to exclude it from income.
Are scholarships or grants considered taxable income?
Scholarships and grants are tax-free if used for tuition and required expenses by degree candidates, but amounts used for room, board, or compensation for services are taxable.