Here’s a Roundup of Your Nontaxable Income

Good news – there are a lot of revenue sources that aren’t taxed. You may have an idea of what they are, but here’s a quick list to review.

There are several sources of revenue that are not subject to income tax. Do you know what they are? Here are the most common sources of money that are generally not taxed on your federal income tax return:

• Borrowed money, such as from banks or personal loans

• Money received as a gift or inheritance from family or friends

• Money paid on your behalf directly to a school or medical facility

• Most life insurance proceeds

• Child support payments

• Money you receive for sustaining an injury

• Scholarships for tuition and books

• Disability insurance benefits from a policy purchased with after-tax dollars

• Interest received on municipal bonds

If you would like professional assistance in tax preparation or tax planning, visit Tax Services and contact us. We are an established CPA firm based in Austin, Texas and specialize in complex tax preparation and tax planning strategies.