What type of income should Annie report on her federal tax return?

Annie should report income from both jobs on her federal tax return because the IRS requires taxpayers to report all sources of income received during the tax year. This includes wages from a primary job and any additional income earned from side jobs or freelance work.

When filing a tax return, it is essential to account for the total income, regardless of where it comes from. This includes income reported on Form W-2, which is used for wages and salaries from an employer, as well as income from side jobs, which may be reported on other forms such as Form 1099 if it exceeds a certain threshold. The Internal Revenue Service expects taxpayers to provide a complete picture of their earnings, which is necessary for accurately calculating tax liabilities and any potential tax credits. Thus, the total income from both Annie’s primary and side jobs is crucial for her tax reporting obligations.