All income is taxable unless it is specifically excluded by law.
Dependent Care Benefits You can exclude from income benefits provided under your employer's qualified dependent care assistance plan. The care must be provided for your dependent under the age of 13 or your spouse or dependent who is not able to care for himself or herself. If you file Form 1040, get Form 2441, Child and Dependent Care Expenses, and its instructions. If you received social security or equivalent tier 1 railroad retirement benefits during the year, part of the amount you received may be taxable. If the only income you received during the year was your social security or equivalent tier 1 railroad retirement benefits, your benefits generally are not taxable and you probably do not have to file a return.