Examples of Income you do not report:

Do not include these amounts when you decide if you must file a return.

Welfare Benefits.

Disability retirement payments and other benefits paid by Veteran’s Administration.

Workers compensation benefits, insurance damages for injury or sickness.

Child Support.

Gifts, money or other property you inherited that was willed to you. Dividends on Veteran’s life insurance.

Life Insurance received because of a person’s death.

Interest on certain State and municipal bonds.

Amounts you received from insurance because you lost use of your home to the extent the amounts were more than the cost of your normal expenses.

Amount an employer contributed on your he half under a qualified group legal service plan.

Cancellation of certain student loans.

Examples of Income you must report.

Wages, salaries, bonuses, commissions, dividends.

Interest on: Bank deposits, bonds, notes, U.S. Saving Bonds.

Mortgage on which you receive payments.

State Tax refunds if you itemized deductions.

 

Social Security benefits. Generally Social Security and tier 1 railroad retirement benefits are not taxable. However beginning in 1984, in certain instances part of these benefits may be taxable if your income is more than $25,000 (for single) and $32,000 (for married filing joint return).

All or some part of your unemployment compensation may be taxable depending on your income and filing status.

Amount received in place of wages from accident and health plans if your employer paid for the policy.

Bartering income (fair market value of goods and services you received in return for your services).

Business expense reimbursements you _ received that are more than you spent for these expenses.

Alimony, separate maintenance or support payments received from and deductible to your spouse or former spouse.

Life Insurance proceeds that are more than the premium you paid.

Profits from business or professions.

Your share of profits from partnerships or corporations.

Profits from farming.

Pensions, annuities and endowments.

Tier 2 and supplemental annuities under Railroad Retirement Acts.

Lump sum _ distributions.

Gains from the sale or exchange of real estate, securities, coins, gold, silver, gems or other property.

Gains from sale of your personal residence, Rents and Royalties.

Prizes and awards (contests, raffles, lottery, and gambling winnings). Earned income from sources outside USA, Director’s fees.

Fees received for jury duty. Fees received as an executor or administrator of an estate. Embezzled or other illegal income.

Article extracted from this publication >> March 15, 1985