Compensation for Services as Gross Income
Learn about the intricacies surrounding compensation for services as gross income, including compensation in money, property, return services, fringe benefits, or third-party payments.
Transcript
In this lesson, we'll explore the general rule that any compensation for services is gross income.
Compensation for Services Generally
Under federal tax law, gross income includes compensation for services. 26 U.S.C. § 61(a)(1). Generally speaking, compensation for services includes any economic benefit conferred upon a taxpayer in exchange for, as a reward for, or to obtain or retain the taxpayer's time and effort. Compensation for services can arise regardless of whether or not the person...