Not all “Income” is Taxable

There are several sources of revenue that are not subject to income tax.

Here are the most common sources of money that are 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.
  • Cash rebates from businesses when you buy an item.
  • Child support payments.
  • Money you receive for sustaining an injury.
  • Scholarships for tuition and books.
  • Disability insurance proceeds from a policy purchased with after-tax dollars.
  • Up to $500,000 of profit for a couple selling their personal residence.
  • Interest received on municipal bonds.

If you have included any of these on your income tax return for the past three years, you can amend your return for a tax refund.

If you would like assistance in determining what to include on your income tax return, please contact us. We are here to help you.

About Brenda J. McGivern, CPA

Brenda McGivern started her own certified public accounting and management consulting firm in October 2001. The full service CPA firm provides tax and accounting solutions to meet the needs of today's small business and individual. Brenda McGivern has become a trusted advisor and valuable resource her clients rely on for timely, accurate assistance when they need it. Before starting the firm, she worked as an accountant for three years at a local firm and prior to that five years at a large international CPA firm in Boston. She has performed the following tax services: federal, state and local tax planning, international tax planning, estate and succession planning, mergers and acquisitions, capital retention and IRS representation. She has also coordinated assurance engagements, such as financial statement audits, reviews and compilations from the planning phase through the reporting phase. She has prepared and reviewed regulatory filings for numerous regulatory agencies including the Security and Exchange Commission. Prior to these positions she was selected from over 2,000 candidates into an eight-person intensive financial management program at an international technology company. The program consisted of graduate level classroom study and two six-month rotational assignments in financial operations. She graduated cum laude from the University of Massachusetts at Amherst and holds a Bachelors Degree in Business Administration with a concentration in accounting. McGivern also holds a license in Massachusetts as a Certified Public Accountant and is a member of the American Society of Certified Public Accountants and the Massachusetts Society of Certified Public Accountants. She resides in Stoughton, Massachusetts with her husband Brian, and their sons Sean, Ryan and Conor and their dog, Davis.
This entry was posted in Financial Planning, Tax and tagged , , , , , , , , , . Bookmark the permalink.

One Response to Not all “Income” is Taxable

  1. Roman Szpond says:

    Thanks for this education!

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