The Most Common Exclusions Of Taxable Income
Tax is a word known by all. We are basically taxed on everything, although there are a few exclusions. Below are a list of exclusions as of 2012 for gross taxable income. Here is the more basic, partial list.
Accident Insurance Proceeds
Annuities(limited-please check for amounts)
Company rewards for longevity or safety reasons ( up to 400$)
Bequests and Inheritance
Casualty Insurance Proceeds
Child Support Payments
Welfare Payments
Gifts-primarily non-business related
Disability Benefits (not always)
Group Term Life Insurance Coverage paid by employers up to 50,000$
Health Insurance Proceeds
Life Insurance Proceeds (unless transferred to another person or entity to pay a debt)
Military Allowance
Social Security Benefits (Dollar amount limit at which time exceeded, 85% of benefits can be considered taxable income)
Meals and Lodging ( If required by job and circumstances)
Veteran’s Benefits
Relocation Payments
Municipal Bond Interest
Scholarships (Tuition, books and other class related supplies only.) Room and board are not included.
Welfare Payments
Workers Compensation