1. Taxable and Non Taxable Income

2. What is Taxable Income
Taxable Income is most realized as wages, salaries, bonuses, commissions, tips, Interest earned from savings or loans to others, Rent proceeds, Capital gains (profit) from sale of real estate property or equipment, Inheritance and Stock dividends.
Review the following lists for other details and taxable income:
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3. What is Non Taxable Income?
Non Taxable Income is not taxed whether or not it is entered on your tax return or not. The following items are deemed nontaxable by the IRS:
Inheritances, gifts and bequests
Cash rebates on items you purchase from a retailer, manufacturer or dealer
Child support payments
Most healthcare benefits
Money that is reimbursed from qualifying adoptions
Grants/Scholarships
Welfare payments
Government Benefits

4. Reporting Income Appropriately
Avoid costly penalties and interest charges
Provides financial support for cost of operating programs and services provided by government entities.