06a – Topic: Concept of Income – What’s Taxable Income vs. Non-Taxable Income?

Topic: Concept of Income – What’s Taxable Income vs. Non-Taxable Income?

Understanding what counts as income is essential for proper tax filing in the US

🔹 1. Types of Taxable Income:-
✅ Wages, Salaries, Tips
✅ Business/Professional Income
✅ Interest & Dividends
✅ Rental Income
✅ Capital Gains
✅ Unemployment Benefits
✅ Social Security (sometimes taxable)

🔹 2. Types of Non-Taxable Income:-
❌ Life Insurance Proceeds (if due to death)
❌ Gifts & Inheritances
❌ Child Support Payments
❌ Municipal Bond Interest
❌ Certain Scholarships/Fellowships
❌ Welfare & Public Assistance

💡 Tip: Not all income is treated equally — always check IRS rules or consult a tax professional for proper classification.