With the 2008 filing season quickly approaching, here are some exclusions from gross income. The following items are generally excluded from income, but are not limited to:
- Accident and health proceeds
- Gifts and inheritance
- Housing allowances for member of the clergy
- Interest on state and local government obligations
- Life insurance proceeds
- meals and lodging provided by your employer
- Military allowances
- Part of scholarships and fellowship grants
- Disaster relief grants
- Payments made by a state to qualified people to reduce the cost of winter energy
- Part of social security benefits
- Veteran's benefits
- Welfare and other public assistance benefits
- Worker's compensation and similar payments for sickness and injury
- Child support
- Casualty insurance
- Damages for physical injury or sickness
- Employee achievement awards (if employer can deduct award)
- Employer contributions to a medical savings account
As you prepare for the coming filing season and you find that you have an unusual situation, or you have income that is questionable as far as it's taxability; talk to your tax preparer. It's always best to be open and honest about your tax situation than to take a chance and leave off or incorrectly file a return.
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