[{"data":1,"prerenderedAt":7},["ShallowReactive",2],{"faq-standard-972":3},{"rec_id":4,"title":5,"text":6},"972","Nontaxable Income","The following income is generally NOT taxable income. \n\u003Cbr>\u003Cbr>\n\u003Cb>There are always exceptions.\u003C/b> For example, inheritances are generally not taxable, but if you inherited an IRA account, you will be taxed when you receive IRA distributions. For most people, these types of income are NOT taxable: \n\u003Cbr>\u003Cbr>\n\u003Cul> \n\u003Cli>Alimony received from agreements dated 2019 or later\u003C/li>\n\u003Cli> Black lung benefits\u003C/li>\n\u003Cli>Cancellation of debt because of bankruptcy or insolvency\n\u003Cul>\u003Cli>Enter your \u003Ci>Form 1099-C\u003C/i> on the \u003Ci>Canceled Debt (1099-C) Information\u003C/i> screen, and we'll calculate how much, if any, of the canceled debt is taxable\u003C/li>\u003C/ul>\u003C/li>\n\u003Cli>Cash back rewards on a credit card\u003C/li>\n\u003Cli> Cash rebates\n\u003Cul>\u003Cli>For example, if you receive a cash rebate of $100 after you purchase a new washing machine\u003C/li>\u003C/ul>\u003C/li>\n\u003Cli>Certain individual care provider income\u003C/li> \n\u003Cli>Child support payments\u003C/li>\n\u003Cli>Court damages or settlements for personal physical injuries or physical sickness (punitive payments are taxable)\u003C/li>\n\u003Cli>Disability payments if you paid the premiums on the policy\n\u003Cul>\u003Cli>If your employer paid the policy, then the disability payments are taxable\u003C/li>\n\u003Cli>If you paid part of the policy, then part of the disability payments you paid are nontaxable\u003C/li>\u003C/ul>\u003C/li>\n\u003Cli>Disaster relief payments\u003C/li>\n\u003Cli>Federal income tax refund\u003C/li>\n\u003Cli>Foster care payments (certain restrictions for individuals over age 18 in foster care)\u003C/li>\n\u003Cli>Gifts\u003C/li>\n\u003Cli>Health and accident benefits\u003C/li>\n\u003Cli>Home sale gains (usually reported on \u003Ci>Form 1099-S\u003C/i>)\u003C/li>\n\u003Cul>\u003Cli>Might be taxable if you lived in the residence less than two years or if the residence has ever been used as a rental property or home office\u003C/li>\u003C/ul>\n\u003Cli>HSA distributions (\u003Ci>Form 1099-SA\u003C/i>) if used for medical expenses\u003C/li>\n\u003Cli>Inheritances\u003C/li>\n\u003Cli>Insurance proceeds for theft or damage to your property (unless worth more than the damage)\u003C/li>\n\u003Cli>Life insurance proceeds\u003C/li>\n\u003Cli>Long-term care insurance benefits\u003C/li>\n\u003Cli>Military allowances\u003C/li>\n\u003Cli>Peace Corps living allowances\u003C/li>\n\u003Cli>Reimbursement for medical care\u003C/li>\n\u003Cli>Rollovers from IRAs and pensions\u003C/li>\n\u003Cli>Roth IRA qualified distributions\u003C/li>\n\u003Cli>Scholarships, fellowships, and Pell Grants (unless used to pay for nonqualified expenses)\u003C/li>\n\u003Cli>Social Security benefits (including SSDI) are either nontaxable or partially taxable\n\u003Cul>\u003Cli>Enter your Social Security benefits on the \u003Ci>Social Security Benefits (Form SSA-1099)\u003C/i> screen and we'll calculate how much, if any, of your benefits are taxable\u003C/li>\u003C/ul>\u003C/li>\n\u003Cli>State income tax refund (if you took the \u003Ci>Standard Deduction\u003C/i> the prior year)\u003C/li>\n\u003Cli>Supplemental Security Income (SSI)\u003C/li>\n\u003Cli>Utility rebates\u003C/li>\n\u003Cli>Veterans Administration disability benefits\u003C/li>\n\u003Cli>Welfare payments\u003C/li>\n\u003Cli>Workers' compensation\u003C/li>\n\u003C/ul>\nIf you have taxable income, you can click on the magnifying glass at the top right of your screen and search the income to find out where to enter it.\n\u003Cbr>\u003Cbr>\n\u003Ca href=\"/freefile2025/answers?faq=8261\">What income is taxable?\u003C/a>",1777391532023]