Taxable or Non-Taxable Income?
This 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 expensesChild support paymentsGifts, bequests, and inheritancesWorkers’ compensation benefits (some exceptions may apply; see Publication 525, Taxable and Nontaxable Income)Meals and lodging for the convenience of your employerCompensatory damages awarded for physical injury or physical sicknessWelfare benefitsCash rebates from a dealer or manufacturerFor the complete article on taxable versus non-taxable income, download and review the IRS’ detailed guide—IRS Publication 525.
