Some types of income you receive are not taxable. When you total your gross income to see if you are required to file a tax return, do not include your nontaxable income. You should keep records of your nontaxable income. Some types of income that generally are not taxable include:

• Child support payments,
• Welfare benefits,
• Life insurance proceeds that are received because of the death of an individual,
• Interest on state or local government obligations,
• Accident and health insurance proceeds,
• Property received as a gift or inheritance,
• Benefits received under any law administered by the Department of Veteran's Affairs; and
• Amounts received under a worker's compensation act for an occupational sickness or injury.

All or a portion of your Social Security or equivalent Railroad Retirement Benefits may be nontaxable. See Topic 423 for more information.

Some scholarship and fellowship grants may be non-taxable. See Topic 421.

Publication 525, Taxable and Nontaxable Income, contains additional information on items not taxed. Call 1-800-829-3676 to order a copy.

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