Tax Resources

IRS Nontaxable Income

What income is nontaxable income?

According to the IRS, nontaxable income is income that is exempt from federal income tax. Nontaxable income is not added to taxable income but may be shown on the tax return.

List of non taxable income
  • child support payments

  • life insurance proceeds

  • welfare benefits and public assistance (certain TANF or Temporary Assistance for Needy Families payments)

  • workers' compensation

  • veterans' benefits

  • gifts, bequests, and inheritances

  • accident and health insurance proceeds

  • supplemental security income or SSI

  • federal income tax refunds

  • interest on state or local government obligations (munis)

  • military allowances

  • moving expense reimbursements

  • compensatory damages awarded for physical injury or sickness

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