Income that is Not Taxable

Income that is Not Taxable

Almost all income earned by American citizens is taxable but there are some exceptions that the IRS makes based on taw law. Some forms of income that the IRS deems not to be nontaxable include adoption expense reimbursements, child support, gifts, worker’s compensation benefits, welfare benefits, and economic stimulus payments received during the last tax year.

Sometimes Taxable

Then there are a couple forms of income that are at times taxable and at other times nontaxable. When you are the beneficiary of a life insurance policy, those proceeds are not taxed. But if an insured cashes out a life insurance policy than income from the event is taxable. Another good example is scholarship and grant money for college. Both scholarship and grant money used for tuition is not taxable. But money from either source used for room and board is taxable by the federal government.

For a more in-depth look at Taxable and Nontaxable Income take a look at IRS publication 525.

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Income that is Not Taxable by

8 Comments

  1. computer hardware
    Posted March 6, 2009 at 7:22 pm | Permalink

    I’m not against the tax if the government use it wisely. but there are lots of government official here in our country who is really corrupt.

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  2. almir
    Posted March 8, 2009 at 4:10 am | Permalink

    it seems that the taxes that we get taxed on are really unfair because they take a large portion of your salary and everything that we buy are taxed its like were working for free just to get by in this country

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  3. Posted March 10, 2009 at 11:47 pm | Permalink

    I like the cafeteria plans available with employers for tax free income. I use the child care program and spend $5,000 a year without paying tax.

    South Beach Acai’s last blog post..The Health Benefits of Acai Berry

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  4. Posted November 24, 2009 at 11:32 am | Permalink

    times taxable and at other times nontaxable. When you are the beneficiary of a life insurance policy, those proceeds are not taxed
    .-= summer camps jobs´s last blog ..Explore the thrill of summer camp =-.

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  5. magnetic generator
    Posted December 17, 2009 at 10:08 am | Permalink

    Didn’t know that one. Thanks! really great. Gives me an more ideas.
    .-= magnetic generator´s last blog ..Perpetual Motion Motor – Start Taking Advantage Of Free Energy =-.

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  6. Steve
    Posted December 17, 2009 at 10:41 am | Permalink

    Glad the article was helpful for you.

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  7. Posted December 23, 2009 at 1:08 am | Permalink

    I love it when it’s not taxable on other times. I wish there would be more tax exemptions. 🙂
    .-= new media marketing´s last blog ..MNM 14 | What Documentary Filmmaking Can Teach You About Creating Compelling Content =-.

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  8. wheelchair lift
    Posted February 6, 2010 at 5:26 pm | Permalink

    Great article. In this day and age we need to find all the legal corners that we can find in order to get through each month.

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