According to the IRS, your labor is worthless — not worth a plug nickel. It is worth about as much as spit on the street. Sound ridiculous? Let’s do the math.
According to the system, and without getting into technical issues, everything someone earns is supposedly ‘income’, right? But why were you paid anything?
You got paid for providing your labor, knowledge, talent, and expertise, i.e. your human capital. You offered this value to someone who wanted it, and was willing to pay you for it, right?
How is that not a direct exchange of your labor value for money value (or anything else of value)?
Let’s say you were paid $40,000 for your labor. What amount of value did you provide for that $40,000? Unless the people who paid you are just dumb and paid for nothing, your provided at least $40,000 worth of labor.
The math is simple: $40,000 received minus $40,000 in labor value you provided = 0 net income (gain).
But according to the IRS, the figures are: $40,000 received minus 0 for your labor value = $40,000 net income.
Which math equation makes more sense to you?
If you believe your labor has value, ask the IRS or your tax person how that value gets figured into the income equation.