Lesson: Common Items Not Included in Gross Income

In this lesson, Nick Palazzolo, CPA, offers a concise review of the various types of income that are not considered part of gross income for tax purposes. With his characteristic down-to-earth approach, Nick walks through a list of non-taxable items including gifts, employer-provided health insurance, workers' compensation, life insurance proceeds, certain scholarships, and child support. He also covers welfare benefits, specific veterans' benefits, interest on municipal bonds, qualified Roth IRA distributions, certain employee fringe benefits, and reimbursements for qualified moving expenses under special circumstances. This engaging summary underscores the importance of understanding what types of income are exempt from taxes, aligning with real-world considerations and IRS regulations.