Are you looking for a hard and fast rule about what income is taxable and what income is not taxable? The fact is that all income is taxable unless the law specifically excludes it.

Taxable income includes money you receive, such as wages and tips. It can also include noncash income from property or services. For example, both parties in a barter exchange must include the fair market value of goods or services received as income on their tax return.

Some types of income are not taxable except under certain conditions, including:

• Life insurance proceeds paid to you are usually not taxable. But if you redeem a life insurance policy for cash, any amount that is more than the cost of the policy is taxable.
• Income from a qualified scholarship is normally not taxable. This means that amounts you use for certain costs, such as tuition and required books, are not taxable. However, amounts you use for room and board are taxable.
• If you got a state or local income tax refund, the amount may be taxable. You should have received a 2013 Form 1099-G from the agency that made the payment to you. If you didn’t get it by mail, the agency may have provided the form electronically. Contact them to find out how to get the form. Report any taxable refund you got even if you did not receive Form 1099-G.

Here are some types of income that are usually not taxable:

• Gifts and inheritances
• Child support payments
• Welfare benefits
• Damage awards for physical injury or sickness
• Cash rebates from a dealer or manufacturer for an item you buy
• Reimbursements for qualified adoption expenses

For more on this topic see Publication 525, Taxable and Nontaxable Income. You can get it at IRS.gov or call to have it mailed at 800-TAX-FORM (800-829-3676).

Additional IRS Resources:

• Bartering Tax Center
• Remember to include Form 1099-G income when you file your taxes

IRS YouTube Videos:

• Taxable and Nontaxable Income – English | Spanish | ASL
  

With tax season in full swing, IRS Commissioner John Koskinen is sending a message to the nation’s taxpayers: the IRS will do all it can to help you file your taxes. The Commissioner’s message is in a special video on the IRS YouTube channel. It offers the following tips to help make your tax filing as smooth as possible this tax season:

• The IRS will provide the assistance you need to get your taxes filed accurately and on time.
• The IRS will work hard to issue refunds quickly while increasing our efforts to stop tax fraud and identity thieves.
• Due to very limited resources, IRS phone lines will be very busy. You may experience extensive wait times. We are working to limit these wait times as much as possible. But the IRS has other options for you to get the information you need.
  • Try a tool.  Use the Where’s My Refund? tool to check on the status of your tax refund. We update the information once a day so there is no need to check the tool more often. Use theEITC Assistant tool to see if you should claim the money-saving Earned Income Tax Credit. Or use the Tax Trails and Tax Map tools to find answers to your tax questions.
  • Download the app.  You can use the newly redesigned IRS smartphone app IRS2Go to check the status of your refund, get a copy of your transcript or get the latest tax news. IRS2Go is available in English and Spanish for Apple and Android devices.
  • Watch a video.  Choose from more than 100 short instructional videos on the official IRS YouTube channel.
  • Get tax tips.  Subscribe to the daily tax tips that the IRS issues during the filing season. You’ll also receive summertime tax tips, as well as special edition tax tips year-round.
  • Go social.  You can connect to the IRS through social media. You’ll find the IRS on Twitter@IRSnews, @IRSenEspanol and @IRStaxpros. The IRS is also on Facebook and Tumblr. For IRS social media links, go to Social Media.

For more details about additional IRS resources and information, visit IRS.gov.

IRS YouTube Video:

• Message to Taxpayers – English | Spanish | ASL

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