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Introduction This publication discusses many kinds of income and explains whether they are taxable or nontaxable. Generally, income is taxable unless it is specifically exempted by law. You can receive income in the form of money, property, or services. You are generally taxed on income that is available to you, regardless of whether it is actually in your possession. A valid check that you received or that was made available to you before the end of the tax year is considered income constructively received in that year, even if you do not cash the check or deposit it to your account until the next year. For example, if the postal service tries to deliver a check to you on the last day of the tax year but you are not at home to receive it, you must include the amount in your income for that tax year. If the check was mailed so that it could not possibly reach you until after the end of the tax year, and you could not otherwise get the funds before the end of the year, you include the amount in your income for the next tax year. Income that is taxable must be reported on your 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. The publication includes discussions on employee wages, fringe benefits, and disability payments, and income from bartering, partnerships, S corporations, and royalties. It also includes information on life insurance proceeds as well as welfare and other public assistance benefits. Check the index for the location of a specific subject.

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