Qualifying payments for foster care are generally not taxable, according to IRS Publication 525. To be excluded from income, foster care payments have to have been received from a state or local government or a qualified placement organization for care provided in the taxpayer's home.Know More
Foster care payments become taxable if there are more than five individuals aged 19 or older in the home.
Certain difficulty-of-care payments for foster individuals who are physically, mentally or emotionally handicapped may also be excluded from income. The state has to determine if the additional compensation is needed. These payments become taxable if the taxpayer is caring for more than 5 individuals aged 19 or older or more than 10 foster children.Learn more in Taxes
Workers' compensation benefits received by workers or their dependants are not taxable in most cases. The exemptions include any compensation that workers would receive as part of their general benefits if they retire.Full Answer >
In general, the proceeds from a life insurance policy paid to a beneficiary are not taxable and are not included as gross income on tax returns. However, any interest received is taxable and must be reported.Full Answer >
If the employer reimburses mileage under an accountable plan, the reimbursement is not taxable. An accountable plan requires the mileage to have a business connection and be reported to the employer in a reasonable period of time, and any excess must be returned to the employer, according to the IRS.Full Answer >
Cash gifts, which means someone gifts cash without receiving items of equivalent value in return, are generally taxable, according to the Internal Revenue Service. Exclusions do apply. For tax years 2014 and 2015, individuals can gift up to $14,000 without being taxed.Full Answer >