Generally, all sources of income are subject to income tax
unless specifically excluded. Here are some sources of money that are not
taxable:
* Money received as a loan.
* Gifts and inheritances.
* Child support received.
* Welfare benefits.
* Worker’s compensation (generally).
* Damages received for physical injury or sickness.
* Cash rebates from purchases.
* Meals and lodging for the convenience of the employer on
employer’s premises.
Some sources of money that may or may not be taxable
depending on the circumstances:
* Life insurance proceeds.
* Scholarship grants.
One source of income that is often overlooked is generated
by bartering. If you trade goods or services for other goods or services with
another person, both of you need to report the fair market value of the goods
or services as income on your tax return.
This list is by no means all inclusive. If you need
additional information about tax, business, or financial matters, please
contact us.
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