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:

1) Child support payments,

2) Welfare benefits,

3) Life insurance proceeds that are received because of the death of an individual,

4) Interest on state or local government obligations,

5) Accident and health insurance proceeds, including certain long term care insurance contracts,

6) Certain property received as a gift or inheritance,

7) Benefits received under any law administered by the Department of Veteran's Affairs,

8) Amounts received under a worker's compensation act for an occupational sickness or injury,

9) Qualified education IRA distributions. See Topic 451 for more information.

10) Certain Roth IRA distributions. See Topic 428 for more information.

11) Certain amounts withdrawn from Medical Savings Accounts (MSA's), and

12) Limited amounts of dependent care assistance paid through a dependent care assistance program.

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. Publications and forms may be downloaded from this site or ordered by calling 1-800-829-3676.

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