The following items are deemed nontaxable by the IRS: Nontaxable income won’t be taxed, whether or not you enter it on your tax return.
This can include the remaining amount of a debt or loan that is canceled, employer contributions to an unqualified retirement plan, and sickness, injury, and disability retirement payments from an employer-paid plan. Unemployment compensation generally is taxable.
Income received as wages, salaries, commissions, rental income, royalty payments, stock options, dividends and interest, and self-employment income are taxable.
