Which items do you think are taxable and which are not? The answers are below.
- Workers compensation
- Educational assistance
- Cancelled debt
- Expense reimbursements
- Fringe benefits
- Bartering
- Hosting a party and receiving payment (such as a candle party)
- Life insurance proceeds
- Unemployment benefits
- 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.