If some of these items were not reported on your Form W-2, they still must be reported as income. If this is the case, be sure this is addressed and corrected for future years. Items not reported on line 7. Some kinds of income are not taxable. These items are called exclusions.
Most exclusions apply in computing both income taxes and self-employment taxes.
The minister s housing allowance is an example of an exclusion that applies only to income taxes, and not to self-employment taxes. However, employers generally are not permitted to give tax-free gifts to employees such as a love offering from the church to the minister. Life insurance proceeds and inheritances. The payments can be made on behalf of a spouse or dependent of the employee. Unfortunately, the requirements for such a plan are not specified in the Tax Code.