Taxable or Non-Taxable?

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Which items do you think are taxable and which are not? The answers are below.

  1. Workers compensation
  2. Educational assistance
  3. Cancelled debt
  4. Expense reimbursements
  5. Fringe benefits
  6. Bartering
  7. Hosting a party and receiving payment (such as a candle party)
  8. Life insurance proceeds
  9. Unemployment benefits
  10. Federal income tax refund

Taxable: cancelled debt (there are exceptions), fringe benefits, bartering, hosting a party, and unemployment benefits

Non-taxable: Workers compensation, education assistance of $5,250, expense reimbursements, life insurance proceeds, and federal income tax refund

There are always exceptions and the rules are constantly changing. If you ever have a question about the taxability of an item, do not hesitate to contact our office.