What types of income are not taxable?

For most people, these types of income are NOT taxable:

  • Life insurance proceeds
  • IRA and Pension rollovers
  • Roth IRA qualified distributions
  • Child support payments
  • Inheritances
  • Gifts
  • Workers Compensation
  • Disability payments if the premiums were paid by you
  • Court awards for personal physical injuries or physical sickness
  • Health and accident benefits
  • Scholarships, fellowships, and Pell grants (if used for education)
  • Foster care payments
  • Usually the gain on the sale of your personal home
  • Welfare payments
  • Supplemental Security Income (SSI)
  • Some Social security benefits
  • Some of cancellation of debt
  • Veterans Administration disability benefits
  • Insurance proceeds for theft or damage to your property
  • Rebate points from credit cards
  • Long-term care insurance benefits
  • Military allowances
  • Reimbursement for medical care
  • Federal income tax refund
  • State income tax refund (if standard deduction was taken last year)