Table of Contents
For the latest information about developments related to Publication 525, such as legislation enacted after it was published, go to www.irs.gov/pub525.
Olympic and Paralympic medals and United States Olympic Committee (USOC) prize money. . If you receive Olympic and Paralympic medals and USOC prize money, the value of the medals and the amount of the prize money may be non-taxable. See the instructions for line 21, Form 1040, at www.irs.gov/pub/irs-pdf/i1040.pdf for more information.
Health flexible spending arrangements (health FSAs) under cafeteria plans. For tax years beginning in 2016, the dollar limitation under section 125(i) on voluntary employee salary reductions for contributions to health flexible spending arrangements is $2,550.
Achieving a Better Life Experience (ABLE) account. This is a new type of savings account for individuals with disabilities and their families. Distributions are tax-free if used to pay the beneficiary's qualified disability expenses. See Pub. 907 for more information.
Public safety officers. A spouse, former spouse, and child of a public safety officer killed in the line of duty can exclude from gross income survivor benefits received from a governmental section 401(a) plan attributable to the officer's service. See section 101(h).A public safety officer that's permanently and totally disabled or killed in the line of duty and a surviving spouse or child can exclude from income death or disability benefits received from the federal Bureau of Justice Assistance or death benefits paid by a state program. See section 104(a)(6).
Certain amounts received by wrongfully incarcerated individuals. Certain amounts you receive due to a wrongful incarceration may be excluded from gross income. See www.irs.gov/individuals/wrongful-incarceration-faqs for more information.
Qualified Medicaid waiver payments. Certain payments you receive for providing care to an eligible individual in your home under a state's Medicaid waiver program, aren’t included in your income. These payments may be excluded from your income whether or not you are related to the eligible individual receiving care.
Terrorist attacks. You can exclude from income certain disaster assistance, disability, and death payments received as a result of a terrorist or military action. For more information, see Sickness and Injury Benefits , later, and Pub. 3920, Tax Relief for Victims of Terrorist Attacks.
Qualified settlement income. . If you are a qualified taxpayer, you can contribute all or part of your qualified settlement income, up to $100,000, to an eligible retirement plan, including an IRA. Contributions to eligible retirement plans, other than a Roth IRA or a designated Roth contribution, reduce the qualified settlement income that you must include in income. See Exxon Valdez settlement income under Other Income, later. Also, see Pub 590-A for more information on contributions to retirement plans.
Foreign income. If you are a U.S. citizen or resident alien, you must report income from sources outside the United States (foreign income) on your tax return unless it is exempt by U.S. law. This is true whether you reside inside or outside the United States and whether or not you receive a Form W-2, Wage and Tax Statement, or Form 1099 from the foreign payer. This applies to earned income (such as wages and tips) as well as unearned income (such as interest, dividends, capital gains, pensions, rents, and royalties). If you reside outside the United States, you may be able to exclude part or all of your foreign source earned income. For details, see Pub. 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.
Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing & Exploited Children®. Photographs of missing children selected by the Center may appear in this publication on pages that otherwise would be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.
You can receive income in the form of money, property, or services. This publication discusses many kinds of income and explains whether they are taxable or nontaxable. It includes discussions on employee wages and fringe benefits, and income from bartering, partnerships, S corporations, and royalties. It also includes information on disability pensions, life insurance proceeds, and welfare and other public assistance benefits. Check the index for the location of a specific subject.
In most cases, an amount included in your income is taxable unless it is specifically exempted by law. Income that is taxable must be reported on your return and is subject to tax. Income that is nontaxable may have to be shown on your tax return but isn’t taxable.
You and your employer agree that part of your salary is to be paid directly to one of your creditors. You must include that amount in your income when your creditor receives it.
Internal Revenue Service
Tax Forms and Publications
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
334 Tax Guide for Small Business
523 Selling Your Home
527 Residential Rental Property
544 Sales and Other Dispositions of Assets
550 Investment Income and Expenses
554 Tax Guide for Seniors
559 Survivors, Executors, and Administrators
575 Pension and Annuity Income
907 Tax Highlights for Persons with Disabilities
915 Social Security and Equivalent Railroad Retirement Benefits
970 Tax Benefits for Education
4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments
Form (and Instructions)
1040 U.S. Individual Income Tax Return
1040A U.S. Individual Income Tax Return
1040EZ Income Tax Return for Single and Joint Filers With No Dependents
1040NR U.S. Nonresident Alien Income Tax Return
1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
W-2 Wage and Tax Statement
See How To Get Tax Help , near the end of this publication, for information about getting these publications.
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