Found cash

Cebusguy

I found a large amount of cash in 2024. I turned it in to the police and after 3 months was able to claim it. All I got was a case number (no 1099 or anything else). How do I enter this on my federal tax form? I think it is Misc Income but don't see any category for it. I know I will owe income tax on it (added to total income) but will I also owe Social Security and Medicare tax on it?

Thank you for any help.

JanaA

Hello Cebusguy!

I applaud your integrity! The IRS states, "Most income is taxable unless it’s specifically exempted by law. Income can be money, property, goods or services. Even if you don’t receive a form reporting income, you should report it on your tax return."

The income you have described would be considered Misc Income. As this is not business or employment type income, it is not subject to Social Security or Medicare taxes.

In our software you can report this in the Other Income section as Misc Income. You can enter a description and the amount as prompted and this will be added to your taxable income.