Taxable and Non Taxable Income List Under US Tax Code

While Internal Revenue Code is huge and has references of various taxable income and income that is not considered taxable. For common man , it is quite hard to go and read and find each type of income that is taxable under 26 US Code . So, here are simple list of income that is certainly taxable and you owe under the law to show those income in the tax return . Similarly , there are income which are not considered taxable . Then there are certain types of income which may or may not be taxable ,depending upon the facts and circumstances.

List of Taxable Income Under Internal Revenue Code

Thumb rule is all kinds of receipt is taxable under IRC unless you find out in a code or ruling that such an income is not taxable . So, the list  probably covers most of the taxable income , yet there are some which may become income based on typical facts associated with such income.

Amount above cost on surrender a life insurance policy for cash
Amounts used for room and board  in any Scholarship s & Fellowship
Back pay
Barter income
Bartering Income
Business income
Capital gains
Cashed out vacation or sick time
Clergy pay
Compensation for personal services
Debt – Canceled or Forgiven Debt
Director’s fees
Disability benefits (employer-funded)
Employee awards
Employee bonuses
Estate and trust income
Exchanges of policyholder interest for stock
Farm income
Gains from sale of property or securities
Hobby income
IRA distributions
Jury duty fees
Lump sum distributions
Military pay (not exempt from taxation)
Military pension
Moving Expenses
Non-employee compensation
Notary fees
Partnership, Estate and S-Corporation income
Pension and Annuity Income
Punitive damage
Railroad retirement—Tier I (portion may be taxable)
Railroad retirement—Tier II
Refund of state taxes (if itemized in year paid and taxes were reduced because of deduction)
Rental income
Retirement Plan Income
Schedule K-1s, Taxpayer’s share
Self-employment income
Severance pay
Social Security Benefits
Supplemental unemployment benefits
Tips and Gratuities
Unemployment Income

List of Non-Taxable Income Under IRC

The following list of non taxable income is comprehensive but not exhaustive . There may be certain income which actually becomes tax exempt on the basis of peculiar facts attached with such income .But the following types of income are generally considered non-taxable under Internal Revenue Code.

Accelerated death benefits
Accident and/or health Insurance benefits
Adoption expense reimbursements for qualifying expenses
Aid to Families with Dependent Children (AFDC)
Child Support
Compensatory (but not punitive) damages awarded in court for physical injury or physical sickness
Credit card rewards and points (noncash prizes less than $600 or tied to spending habits)
Damages for physical injury (other than punitive)
Dealer/manufacturer cash rebates
Death payments
Disability Benefits or Disability Pension payments
Disaster relief grants
Dividends of life insurance
Federal income tax refunds
Frequent flyer miles
Gifts, Bequests, and Inheritances up to a certain value
Interest on EE/I bonds redeemed for qualified higher education expenses
Interest on tax-free securities
Life insurance benefits
Long-term Care Insurance payments
Meals and lodging when required by your job
Medical Savings Account withdrawals
Military Allowances
Payments to the beneficiary of a deceased employee
Qualified canceled mortgage debt
Qualified scholarships and grants
Reimbursements for theft or casualty loss
Relocation payments or payments in lieu of worker’s compensation
Rental allowance of clergyman
Sickness and Injury Payments
Social security benefits (if it is your only form of income)
Supplemental Security Income (SSI)
Temporary Assistance for Needy Families (TANF)
Up to $100,800 of foreign earned income (for 2015)
Veterans’ Benefits
Welfare benefits (including TANF) and food stamps
Worker’s Compensation (and FECA payments)


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