Nontaxable income is income that is exempt from tax. Most nontaxable income is not reported. Some types of nontaxable income will be shown on the return, but will not be added into the amount of income subject to tax.

The following types of income are nontaxable:

• Child support
• Federal income tax refunds
• Certain life insurance proceeds
• Gifts and bequests
• Inheritances
• Insurance and certain other payments for physical injury and sickness

	Although gifts and bequests may be exempt from federal taxes, they may be subject to state and local taxes. Inheritances are usually not taxable except for IRAs and Pensions. See Volunteer Resource Guide (Tab D).