Taxable and Non-Taxable Income

These lists are non-inclusive

Taxable Income

  1. Wages, salaries and other compensation.
  2. Bonuses, stipends and tip income
  3. Commissions, fees and other earned income.
  4. Sick pay.
  5. Disability pay if received as a benefit of employment (includes third party plan).
  6. Employer supplemental unemployment benefits (SUB pay).
  7. Employee contributions to retirement plans and tax deferred annuity plans (including Sec. 401k, Sec. 403b, Sec. 457b, etc.).
  8. Employer-provided educational assistance (taxable to the same extent as for federal taxation).
  9. Net rental income.
  10. Net profits of businesses, professions, corporations, partnerships, etc.
  11. Income from partnerships, S-corps, estates or trusts.
  12. Employee contributions to costs of fringe benefits.
  13. Ordinary gains as reported on Federal Form 4797.
  14. Income from wage continuation plans (including retirement incentive plans, severance pay, and short-term disability).
  15. Vacation pay.
  16. Stock options (taxed when exercised, usually valued at market price less option price on the date the option is exercised).
  17. Farm net income.
  18. Employer paid premiums for group term life insurance over $50,000.00.
  19. Compensation paid in goods or services or property usage. Taxed at fair market value.
  20. Contributions made on behalf of employees to tax-deferred annuity programs.
  21. Prizes and gifts if connected with employment to the same extent as taxable for Federal Income Tax purposes.
  22. Director fees.
  23. Income from jury duty.
  24. Union steward fees.
  25. Strike benefits paid by employer.
  26. Profit sharing.
  27. Uniform, automobile and travel allowances.
  28. Reimbursements in excess of deductible expenses.
  29. Royalties (unless derived from registered copyrights, patents, or trademarks)

Non-Taxable Income

  1. Interest or dividend income.
  2. Welfare benefits.
  3. Social Security.
  4. Income from qualified pension plans.
  5. Unemployment benefits.
  6. Worker's compensation.
  7. Life insurance proceeds.
  8. Gambling and lottery winnings.
  9. Alimony received.
  10. Military pay, including Reserves and National Guard (excludes civilians employed by military or National Guard.
  11. Capital gains.
  12. Gross income and receipts of religious, fraternal, charitable, scientific, literary or educational institutions to the extent that such income and receipts are derived from real estate, tangible or intangible property or other activities that are tax-exempt.
  13. Royalties derived from intangible property.
  14. Annuity distributions.
  15. Housing allowances for clergy to the extent that the allowance is used to provide a home.
  16. Health and welfare benefits distributed by governmental, charitable, religious or educational organizations.
  17. Compensatory damages, as defined in Federal regulations.
  18. Insurance proceeds.
  19. Poll workers, unless income exceeds $1000.00
  20. Patent and copyright income.