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IRS.gov Website
Publication 554
taxmap/pubs/p554-009.htm#en_us_publink100043644

Other Items(p19)

rule
The following items generally are excluded from taxable income. You should not report them on your return, unless otherwise indicated as taxable or includable in income.
taxmap/pubs/p554-009.htm#en_us_publink100043645

Gifts and inheritances.(p19)

rule
Generally, property you receive as a gift, bequest, or inheritance is not included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you. If property is given to a trust and the income from it is paid, credited, or distributed to you, that income also is taxable to you. If the gift, bequest, or inheritance is the income from property, that income is taxable to you.
taxmap/pubs/p554-009.htm#en_us_publink100043646

Veterans' benefits.(p19)

rule
Do not include in your income any veterans' benefits paid under any law, regulation, or administrative practice administered by the Department of Veterans Affairs (VA). See Publication 525.
taxmap/pubs/p554-009.htm#en_us_publink100043647

Public assistance benefits.(p19)

rule
Other items that are generally excluded from taxable income also include the following public assistance benefits.
taxmap/pubs/p554-009.htm#en_us_publink100043648
Welfare benefits.(p19)
Do not include in your income benefit payments from a public welfare fund based upon need, such as payments due to blindness. However, you must include in your income any welfare payments that are compensation for services or that are obtained fraudulently.
taxmap/pubs/p554-009.htm#en_us_publink100043649
Payments from a state fund for victims of crime.(p19)
These payments should not be included in the victims' incomes if they are in the nature of welfare payments. Do not deduct medical expenses that are reimbursed by such a fund.
taxmap/pubs/p554-009.htm#en_us_publink1000240545
Home Affordable Modification Program (HAMP).(p19)
If you benefit from Pay-for-Performance Success Payments under HAMP, the payments are not taxable.
taxmap/pubs/p554-009.htm#en_us_publink100043650
Mortgage assistance payments.(p19)
Payments made under section 235 of the National Housing Act for mortgage assistance are not included in the homeowner's income. Interest paid for the homeowner under the mortgage assistance program cannot be deducted.
Also, mortgage payments provided under the Department of Housing and Urban Development's Emergency Homeowners' Loan Program (EHLP), state housing finance authorities receiving funds allocated from the Housing Finance Agency Innovation Fund for the Hardest-Hit Housing Markets (HFA Hardest Hit Fund), or other similar state programs receiving funding from EHLP are excluded from income. Interest paid for the homeowner under the EHLP or the HFA Hardest Hit Fund may be deductible. See Form 1098-MA, Mortgage Assistance Payments, and its instructions for details.
taxmap/pubs/p554-009.htm#en_us_publink100043651
Payments to reduce cost of winter energy use.(p19)
Payments made by a state to qualified people to reduce their cost of winter energy use are not taxable.
taxmap/pubs/p554-009.htm#en_us_publink100043652
Nutrition Program for the Elderly.(p19)
Food benefits you receive under the Nutrition Program for the Elderly are not taxable. If you prepare and serve free meals for the program, include in your income as wages the cash pay you receive, even if you also are eligible for food benefits.
taxmap/pubs/p554-009.htm#en_us_publink100043653
Reemployment Trade Adjustment Assistance (RTAA).(p19)
Payments you receive from a state agency under the Reemployment Trade Adjustment Assistance (RTAA) must be included in your income. The state must send you Form 1099-G to advise you of the amount you should include in income. The amount should be reported on Form 1040, line 21.
taxmap/pubs/p554-009.htm#en_us_publink100043654

Persons with disabilities.(p19)

rule
If you have a disability, you must include in income compensation you receive for services you perform unless the compensation is otherwise excluded. However, you do not include in income the value of goods, services, and cash that you receive, not in return for your services, but for your training and rehabilitation because you have a disability. Excludable amounts include payments for transportation and attendant care, such as interpreter services for the deaf, reader services for the blind, and services to help individuals with an intellectual disability do their work.
taxmap/pubs/p554-009.htm#en_us_publink100043655

Medicare.(p19)

rule
Medicare benefits received under title XVIII of the Social Security Act are not includible in the gross income of the individuals for whom they are paid. This includes basic (part A (Hospital Insurance Benefits for the Aged)) and supplementary (part B (Supplementary Medical Insurance Benefits for the Aged)).
taxmap/pubs/p554-009.htm#en_us_publink100043656

Old-age, survivors, and disability insurance benefits (OASDI).(p19)

rule
OASDI payments under section 202 of title II of the Social Security Act are not includible in the gross income of the individuals to whom they are paid. This applies to old-age insurance benefits, and insurance benefits for spouses, children, widows, widowers, mothers and fathers, and parents, as well as the lump-sum death payment.