Taxable or Non-Taxable Income?
February 20, 2012This is always a key question during tax season. While most income received is taxable and must be reported on your federal income tax return, there are some instances when income may not be taxable. To help you out, the IRS has provided the following list of items that are NOT included as taxable income:
- Adoption expense reimbursements for qualifying expenses
- Child support payments
- Gifts, bequests, and inheritances
- Workers' compensation benefits (some exceptions may apply; see Publication 525, Taxable and Nontaxable Income)
- Meals and lodging for the convenience of your employer
- Compensatory damages awarded for physical injury or physical sickness
- Welfare benefits
- Cash rebates from a dealer or manufacturer
For the complete article on taxable versus non-taxable income, download and review the IRS’ detailed guide—IRS Publication 525.