This topic has discussed income that is subject to tax versus income that is exempt from tax.
Taxable income that VITA/TCE volunteers are qualified to handle includes most employment compensation; interest and dividends; state and local tax refunds; alimony; capital gains and capital gain distributions; IRA, pension, annuity, social security and railroad retirement distributions; unemployment benefits; and other income such as jury duty pay, gambling winnings, and certain damage payments.
Some examples of tax-exempt income are child support; federal tax refunds; certain life insurance proceeds; certain payments for physical injury and sickness; interest from certain state and local bonds; certain TANF payments; VA and most social security benefits; and workers' compensation.
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