This chapter discusses many kinds of income and explains whether they are taxable or nontaxable. Income that is taxable must be reported on your tax return and is subject to tax. Income that is nontaxable may have to be shown on your tax return, but is not subject to tax. This chapter begins with discussions of the following income items.
Life insurance proceeds.
S Corporation income. Rents from personal property. Welfare and other public assistance benefits. These discussions are followed by brief discussions of many income items arranged in alphabetical order. You must include on your return all income you receive in the form of money, property, and services unless the tax law states that you do not include them.