Definition of gross income (Arizona state tax filing requirements)
Disclaimer: I am not a tax professional. Please don't rely on this answer in lieu of professional advice. If your sole source of Arizona income is your commercial property, use the number on line 17 of your federal form 1040. This number is derived from your federal Schedule E. If you have multiple properties (or other business income from S corporations or LLCs), use only the Schedule E amount pertaining to the AZ property. "I would suggest reading through page 1 of the Arizona Nonresident form instructions at the web address below: https://www.azdor.gov/Portals/0/ADOR-forms/TY2015/10100/10177_inst.pdf To quote: ""You are subject to Arizona income tax on all income derived from Arizona sources. If you are in this state for a temporary or transitory purpose or did not live in Arizona but received income from sources within Arizona during 2015, you are subject to Arizona tax. Income from Arizona sources includes the following: ...the sale of Arizona real estate...""" Many states have a simple method for assessing income tax on nonresidents.  If you have $X income in State A where you claim nonresident status and  $Y income overall, then you owe State A a fraction (X/Y) of the income  tax that would have been due on $Y income had you been a resident of State A.  In other words, compute the state income tax on $Y as per State A rules, and send us (X/Y) of that amount.  If you are a resident of State B, then State B  will tax you on $Y but give you some credit for taxes paid to State A. Thus, you might be required to file a State A income tax return regardless of how small $X is.  As a practical matter, many commercial real-estate  investments are set up as limited partnerships in which most of the annual taxable income is a small amount of portfolio income (usually interest income that you report on Schedule B of Form 1040), and the annual  bottom line is lots of passive losses which the limited partners report (but do not get to deduct) on the Federal return.  As a result, State A is unlikely to come after you for the tax on, say, $100 of interest income each year because it will cost them more to go after you than they will  recover from you. But, when the real estate is sold, there will (hopefully) be a big capital gain, most of which  will be sheltered from Federal tax since the passive losses finally get  to be deducted.  At this point, State A is not only owed a lot of money (it knows nothing of your passive losses etc) but, after it processes the income tax return that you filed for that year, it will likely demand that you file income tax returns for previous years as well.
Such activity is normally referred to as bartering income. From the IRS site - You must include in gross income in the year of receipt the fair market value of goods or services received from bartering. Generally, you report this income on Form 1040, Schedule C (PDF), Profit or Loss from Business (Sole Proprietorship), or Form 1040, Schedule C-EZ (PDF), Net Profit from Business (Sole Proprietorship). If you failed to report this income, correct your return by filing a Form 1040X (PDF), Amended U.S. Individual Income Tax Return. Refer to Topic 308 and Amended Returns for information on filing an amended return. I'm not confident that the requirements for 2017 are up yet, but assuming they don't change much from those of 2016, then probably not if you have no other earnings this year.  If you make $500 a month, then you will make $6,000 this year. This is below the filing requirements for most taxpayers, unless you are married but filing separately. At the end of 2017 you should tally up your earnings (including earnings from other sources) find which category you find yourself in on the table, and make a final determination of whether you'll need to file. "While this does fall under the ""All-inclusive income"" segment of GI (gross income), there are two questions that come up.  I invested in a decentralized bitcoin business and earned about $230 this year in interest from it Your wording is confusing here only due to how bitcoin works." "This may be closed as not quite PF, but really ""startup"" as it's a business question.  In general, you should talk to a professional if you have this type of question, specifics like this regarding your tax code. I would expect that as a business, you will use a proper paper trail to show that money, say 1000 units of currency, came in and 900 went out. This is a service, no goods involved. The transaction nets you 100, and you track all of this. In the end you have the gross profit, and then business expenses. The gross amount, 1000, should not be the amount taxed, only the final profit." You should consult a US CPA to ensure your situation is handled correctly.  It appears, the money is Israel source income and not US source income regardless if you receive it while living in the U.S. If you file the correct form, I suspect the form is 1040NR and your state form to disclose your income, if any, in 2015 and 2016, it should not be a problem. Having said that, if you do earn any type of income while in the U.S. , you are required to disclose it to both the IRS and state. "P/E is price to earnings, or the price of the company divided by annual earnings. Earnings, as reported, are reported on accrual basis. Accrual basis accounting is...without going too deep, like taking a timeline, chopping it up and throwing different bits and pieces of every year into different piles.  Costs from 2008 might show up in 2011, or the company might take costs in 2011 that aren't necessarily costs until 2012.  Examples would include one-time charges for specific investments, like new shipping centers, servers for their hosting services, etc.    Free cash flow is the amount of cash Amazon is generating from its operations. Free cash flow is almost always different from earnings because it's the amount of Earnings + adjustments for non-cash activities - capital expenditures (long-term investments.)  Earnings is one thing.  Cash generation is a completely different animal.  There are plenty of companies that ""earn"" billions, but only have a few hundred million in cash to show for it because their earnings have to be reinvested into new stuff to grow/maintain the business.  To have a free cash flow yield of 2.5% is to have a company valued at $40 for each $1 of free cash flow that the company generates each year.  $1/$40 = 2.5%.  SGA = Selling, General, &amp; Administrative expenses.  These are the costs of running the company - paying salaries, advertising, etc.  This cost is second only to COGS, which is Cost of Goods Sold.    Currently, Amazon pays $.774 for every $1 product it sells.  Its operations add another ~$.20 to that total.  After taxes, Amazon keeps about 2 cents of every dollar's worth of product it sells.  This 2 cents is Amazon's net margin of 2%.  Net margin is (net income)/(sales).  If Amazon earned $3 for every $100 in sales it would have a net margin of 3%.     Let me know if this makes no sense.  If there's anything in particular that is especially confusing, definitely reply and I'll better clarify on specific items.  Fire away with any questions, also.  I love to discuss finance and accounting." "Without divulging too many specifics.  Net income is 73k.  Total income is 136k.  Filed as an S-Corp.  Using Quickbooks to classify expenses etc.  I know its not much information but I don't know what to look out for, like ""whoa, net income is 73k, you gotta spend that!""  I have a CPA but isn't offering much in the terms of ""help"" and ""explanation"".  Thanks for your time!" Here's how the CBO says the top 1% got their income in 2013 (latest data):      Source|% from source :--------|---------: Cash Wages and Salaries|33.4% Business Income|23.2% Capital Gains|19.1% Capital Income|11.2% Corporate Tax Borne by Capital|7.3% Other Income|3.2% Employer's Share of Payroll Taxes|0.9% Employee's Contributions to Deferred Compensation Plans|0.7% Employer's Contributions to Health Insurance|0.5%   And here are there definitions of the types of income:  * Labor income—Cash wages and salaries, including those allocated by employees to 401(k) plans; employer-paid health insurance premiums; the employer’s share of Social Security, Medicare, and federal unemployment insurance payroll taxes; and the share of corporate income taxes borne by workers.  * Business income—Net income from businesses and farms operated solely by their owners, partnership income, and income from S corporations.   * Capital gains—Profits realized from the sale of assets. Increases in the value of assets that have not been realized through sales are not included in the Congressional Budget Office’s measure of market income.   * Capital income (excluding capital gains)—Taxable and tax-exempt interest, dividends paid by corporations (but not dividends from S corporations, which are considered part of business income), positive rental income, and the share of corporate income taxes borne by owners of capital.   * Other income—Income received in retirement for past services and other sources of income. "New York will want to you to pay taxes on income from ""New York sources"". I'm not sure what this means to a freelance web developer.  If your wife is doing freelance web development under the same business entity as she did in New York (ie. a New York sole proprietor, corporation, etc), you probably do need to file. From nonresident tax form manual: http://tax.ny.gov/pdf/2011/inc/it203i_2011.pdf If you were a nonresident of New York State, you are subject to New   York State tax on income you received from New York State sources in   2011. If you were a resident of New York State for only part of 2011, you are subject to New York State tax on all income you received while   you were a resident of the state and on income you received from New   York State sources while  you were a nonresident.  To compute the amount of tax due, use Form IT-203, Nonresident and   Part-Year Resident Income Tax Return. You will compute a base tax as   if you were a full-year  resident, then determine the percentage of   your income that is subject to New York State tax and the amount of   tax apportioned to New York State." "Do I have to explain the source of all income on my taxes? ""Yes, you do"", say the ghosts of Ermenegildo and Mary Cesarini. https://turbotax.intuit.com/tax-tips/general/what-to-know-about-taxes-on-found-property/L9BfdKz7N The Cesarinis argued to the IRS that the money wasn’t income, and so it should not be taxed as such. The IRS wasn’t swayed by the couple’s argument. The case went to federal court, and the IRS won. “Found” property and money has been considered taxable income ever since. The IRS plainly states that taxpayers must report “all income from any source,"" even income earned in another country, unless it is explicitly exempt under the U.S. Tax Code. This covers a wide range of miscellaneous income, including gambling winnings. According to the Cesarini decision, money you find isn’t explicitly exempt. The tax impact won’t be significant if you find an item of property with a fair market value of only $500 and are in the 25% tax bracket. You’ll owe the IRS $125 ($500 x .25 = $125). However, if you are a finder and keeper of $10,000, your tax burden will be $2,500 ($10,000 x .25 = $2,500)." "The Form 1040 (U.S. tax return form) Instructions has a section called ""Do You Have To File?"".  Below a certain income, you are not required to file a tax return and pay any tax.  This amount of income at which you are required to file depends on several things, including your dependency status (you are a dependent of your parents), your marital status, and other factors.  The instructions have charts that show what these numbers are.  You would fall under Chart B. Assuming that you are under age 65, unmarried, and not blind, you only have to file when you reach the following conditions: Your unearned income was over $1,050. Your earned income was over $6,300. Your gross income was more than the larger of— $1,050, or Your earned income (up to $5,950) plus $350. (Note: Income from YouTube would count as ""earned income"" for the purposes above.) However, if you are producing your own videos and receiving revenue from them, you are technically self-employed.  This means that the conditions from Chart C also apply, which state: You must file a return if any of the five conditions below apply for 2015. As a self-employed person, you can deduct business expenses (expenses that you incur in producing your product, which is this case is your videos).  Once your revenue minus your expenses reach $400, you will need to file an income tax return." "Income is income... it depends how it's structured.. personal or corporate.. but still you need to pay taxes... if you get audited, the tax man could look at your bank statements and ask, ""where is this money coming from""" When you enter your expected gross income into the worksheet - just enter $360000 and leave everything else as is. That should give you the right numbers. Same for State (form DE-4). "ITR-4 is for incorporated business. For freelancing, You can fill ITR 2 and declare the freelancing income as ""income from other source"". Refer to the Income Tax website for more details" Unfortunately, you are required, but most states do have agreements with neighboring states that let the states share the collected taxes without the person having to pay double taxes. So being as this is your first tax return in your current situation, you might be wise to have a professional fill it out for you this year and then next year you can use it as a template. Additionally, I really would like to see someone challenge this across state lines taxation in court. It sure seems to me that it is a inter-state tariff/duty, which the state's are expressly forbidden from doing in the constitution.