TaxHawk® Tax Tips

Non-Taxable Income

Do NOT overpay the IRS by including non-taxable income on your tax return. The following are some of the main non-taxable items of income:
  • Life insurance proceeds
  • IRA and pension rollovers
  • Child support payments
  • Inheritances
  • Gifts
  • Workers compensation
  • Disability payments if you paid the premiums on the policy. If your employer paid the policy, then the disability payments are taxable. If you paid part of the policy, then part of the disability payments are non-taxable.
  • Damages for personal physical injuries. However, damages for emotional distress are taxable except for related medical expenses.
  • Health and accident benefits
  • Federal income tax refund. Also your state income tax refund if you took the standard deduction on the previous year's 1040.
  • Many scholarships and fellowships are not taxable.
  • Foster care payments (certain restrictions for individuals over age 18 in foster care)
  • Gain on the sale of your personal residence is usually nontaxable. The gain might be taxable if you lived in the residence less than two years or if the residence has ever been used as a rental property or home office.
  • Roth IRA qualified distributions
Look over seven common tax mistakes made when filing your tax return with the IRS

File Your Federal Tax Return for FREE!

Why pay $50, $100, or more to file your federal income tax return? Prepare, print, and file your federal taxes online for FREE with TaxHawk! It's easy, convenient, and accurate. We guarantee it.
TaxHawk helps tax filers find mistakes before they happen

TRUSTED COMPANY

TaxHawk® is an authorized IRS e-file provider.
IRS e-file
Prepare and file your taxes with confidence.

REFUND MAXIMIZER

Our FREE Refund Maximizer helps you find the tax deductions you deserve.

BEST VALUE AROUND

TaxHawk is the Best Bang for Your Buck! Compare our software to the others and you'll see.
DigiCert
TRUSTe Privacy Certification
Security Metrics
© 2002-2019 TaxHawk, Inc. - All Rights Reserved - Terms of Use