Just in Case Any Prospective Obama Cabinent Members, or....
Just in case any prospective Obama Cabinet members read this, or if ANYONE from Illinois is doing their taxes:
"Bribes: If you receive a bribe, include it in your income...
"Illegal activities: Income from illegal activities, such as money from dealing
illegal drugs, must be included in your income on Form 1040, line 21, or on
Schedule C or Schedule C-EZ (Form 1040) if from your self-employment
"Kickbacks: You must include kickbacks, side commissions, push money, or similar payments you receive in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity....Stolen property. If you steal property, you must report its fair market value in your income in the year you steal it unless in the same year, you return it to its rightful owner." [IRS Publication 525 (Taxable and Nontaxable Income)]
I do have one question: If you steal something in one tax year, and return it the following year, are you supposed to pay the tax in Year 1, and then apply for a refund in Year 2? It's that sort of complexity that kills entrepreneurship, your realize.
(Nod to Kevin L, who pays his taxes)