Compensation for Services

Generally, you must include in gross income everything you receive in payment for personal services. In addition to wages, salaries, commissions, fees, and tips, this includes other forms of compensation such as fringe benefits and stock options.

You need not receive the compensation in cash for it to be taxable. Payments you receive in the form of goods or services generally must be included in gross income at their fair market value.

You must include in your income all unemployment compensation you receive. See Publication 525, Taxable and Nontaxable Income, for more detailed information on specific types of income.

Volunteer work. Do not include in your gross income amounts you receive for supportive services or reimbursements for out-of-pocket expenses under any of the following volunteer programs.

• Retired Senior Volunteer Program (RSVP)
• Foster Grandparent Program
• Senior Companion Program
• Service Corps of Retired Executives (SCORE)

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