The Grass Doctor

Wages earned by a worker at a casual fast-food restaurant are taxable nontaxable?

13: Wages earned by a worker at a casual fast-food restaurant are A. Taxable B. Nontaxable -- -- 14: Tips earned by a server in a fashionable restaurant are A. Taxable B. Nontaxable -- -- 15: Overtime pay earned by a construction worker for working extra hours to complete a project on time is A. Taxable B. Nontaxable -- -- 16: Bonus given to a salesperson for making the most sales during the month is A. Taxable B. Nontaxable -- -- 17: Free lawn care service for a month for a mailroom employee who developed a handbook for new employees is A. Taxable B. Nontaxable -- -- 18: Interest income is earned on all of the following except A. U.S Saving Bonds. B. rental properties. C. deposits in savings accounts D. deposits in credit union accounts.

Public Comments

1. All income, from whatever source derived is taxable. Thus, in questions 13 through 16, the income would be taxable. In question 17, I am assuming that the lawn care was somehow given in exchange for the rights to the handbook. If this is the case, then the value of the services would also be taxable. In question 18, all yield interest income except B, rental properties, which would yield rental income. However, the interest income on a US savings bond can be tax free under certain circumstances.