Some types of income you receive are not taxable. When you total your gross income to see if you are required to file a tax return, do not include your nontaxable income. Some types of income that generally are not taxable include:

Child support payments;

Welfare benefits;

Life insurance proceeds that are received because of the death of an individual;

Interest on state or local government obligations;

Accident and health insurance proceeds;

Property received as a gift or inheritance;

Benefits received under any law administered by the Department of Veteran's Affairs; and

Amounts received under a worker's compensation act for an occupational sickness or injury.

All or a portion of your Social Security or equivalent Railroad Retirement Benefits may be nontaxable. Refer to Topic 424 for more information. You should keep records of your nontaxable income.

Some scholarship and fellowship grants may be non-taxable. [Refer to Topic 422].

Publication 525, Taxable and Nontaxable Income, contains additional information on items not taxed.

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