$1,000 in interest income, and $5,000 in sales from your e-commerce business, your gross income for the year would be all of those income sources added up and total $86,000 before taxes.

But that interest comes at a price. Generally, the IRS requires you to pay federal taxes on any savings account interest you earn in a given year, regardless of whether it’s $1 or $100.

Required withdrawals from retirement accounts and income from other sources can also affect your tax liabilities. That’s why it's crucial to know how ... muni bond interest, and alimony and ...