Is All Income Taxable?
Gifts or inheritances received is typically not taxable.
Most income you earn throughout the year is taxable, however, some is not. Income that is not typically taxable, includes:
- Child support payments
- Gifts or inheritances received
- Welfare benefits
- Damage awards for physical injury or sickness
- Cash rebates from a dealer of manufacturer for an item you purchased
- Qualified reimbursed adoption expenses
Be sure to include all taxable income on your tax return, including the fair market value of any items you may have bartered throughout the year.