When it comes to filing taxes, it’s important to have a clear understanding of the various types of income that need to be reported. Wages, salaries, and other earnings are some of the most common forms of income that individuals receive, and they play a significant role in determining your tax liability.

Wages are typically earned through hourly work, where an individual is paid a specific rate for each hour worked. This can include regular pay as well as overtime, bonuses, and commissions. It’s important to note that wages are subject to federal income tax, state income tax (if applicable), and Social Security and Medicare taxes.

Salaries, on the other hand, are fixed amounts of money paid to an employee on a regular basis, usually on a monthly or annual basis. They can be paid on an hourly, weekly, bi-weekly, or monthly basis. Like wages, salaries are subject to federal and state income tax, as well as Social Security and Medicare taxes.

Other earnings can include a wide range of income sources, such as freelance work, self-employment income, rental income, dividends, interest, and capital gains. These earnings may have different tax implications and may require additional reporting on your tax return.

It’s important to keep accurate records of your wages, salaries, and other earnings throughout the year, as you will need this information when filing your taxes. This includes keeping track of any documentation, such as pay stubs, W-2 forms, 1099 forms, and receipts for deductible expenses.

Remember, when it comes to taxes, it’s always best to consult with a qualified tax professional or use tax software to ensure that you are accurately reporting your income and taking advantage of any available deductions or credits.