Lotus Li

Yes, U.S. citizens and resident aliens must report all worldwide income, including foreign income, on their U.S. tax return, unless legally exempt.

Life insurance payouts are generally not taxable, but interest, installment payments, employer-owned policies, and some transfers may trigger taxes.

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.

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.

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.

Gambling winnings are fully taxable and must be reported; losses can be deducted only if you itemize and cannot exceed your reported winnings.

Unemployment benefits remain taxable in 2025 under current IRS rules—recipients should report them as income and consider tax withholding.

Social Security benefits may be taxable depending on your income—up to 85% could be taxed if your combined income exceeds IRS thresholds

Selling items online? Report all income—business sales go on Schedule C, personal gains may be taxable, and losses generally aren’t deductible.

Report side hustle income on Schedule C if it’s a business, or Schedule 1 if it’s a hobby—track all income, even without a 1099 form.