Taxable and Non-Taxable Items


Allowance for uniforms, autos & travel
Annual leave lump sum payment
Contributions made by or on behalf of employees to cafeteria, 401K or any deferred compensation
Contributions made by or on behalf of employees to a tax deferred annuity or stock purchase plan
Cost of group term life insurance over $50,000
Director’s fees
Disability income received as a benefit of employment
Employer paid education assistance if IRS taxed
Executor fees
Incentive payments
Income from wage continuation plans
Jury duty fees
Misc. earned income, examples: child care, house cleaning, yard work (1099-Misc.) (Sch C)
Lottery and gambling winnings
Ordinary income from 4797
Prizes, awards if connected with employment
Profit sharing
Rental income (total gross over $3,000
Severance Pay
Sick pay if premiums paid by employer
Stock bonus incentive plans
Stock options as indicated on W2
Strike benefits
Supplemental unemployment pay paid by employer
Vacation pay


Capital Gains
Compensation for personal injury
Compensation for property damage
Copyright and patent income
Disability income paid by S.S. or other Federal
Dividends (1099-DIV)
Election worker compensation up to $1,000
Government allotments
Housing for clergy
Income of religious, fraternal, charitable, scientific literary or educational institutions
Interest (1099-INT)
Meals and lodging required on premises
Military pay including Natl
Pension income (1099R)
Sick pay if paid by employee
Social Security benefits
Welfare payments
Workers compensation

This list may not be all inclusive and is subject ot modification as warranted.

NOTICES: Always use box 20 (local wages) from W2 when figuring income. Losses from Sch C and Sch E cannot be deducted from W2 income.