Nontaxable or Exempt Income
Gross income is all income received in the form of money, goods, property, and services that is not exempt from tax. It includes income from sources outside the U.S., even if part or all of that income can be excluded. Gross income may include part of social security benefits received, and certain scholarship and fellowship grants.
- Nontaxable or "excludable" refers to income such as gifts and inheritances. Excludable income is not shown on the return.
- Exempt income includes interest income produced from certain types of investments. There are some instances when exempt income is shown on the return, but not included in the income tax computation, for example, tax-exempt interest income.
Review the Volunteer Resource Guide (Tab D) for tables of taxable and nontaxable income.