Taxable and Non-Taxable Income

Taxable income

  • Wages, salaries, and other employee compensation
  • Bonuses, stipends, and tip income
  • Commissions, fees and other earned income
  • Sick pay and third party sick pay
  • Employer supplemental unemployment benefits (Sub pay)
  • Contributions to retirement plans and tax deferred Annuity plans (including Sec. 410k, Sec. 403b, 457b, etc. 
  • Lottery winnings
  • Net rental income
  • Net profits of business, professions, corporations, partnerships, etc. 
  • Income from partnerships, estates, and trusts
  • Employee contributions to cost of fringe benefits
  • Ordinary gains are reported on form 4797
  • Income from wage continuation plans (including retirement incentive plans and severance plans)
  • Vacation pay
  • Stock options
  • Contributions made on behalf of employees to tax deferred annuity plans
  • Income from guaranteed annual wage contracts
  • Prizes and gifts connected to employment if taxed for Federal tax purposes
  • Gambling winnings

Non-Taxable Income

  • Interest or dividend income
  • Welfare benefits
  • Social security benefits
  • Income from qualified pension plans
  • State unemployment benefits
  • Workers compensation
  • Proceeds of life insurance
  • Alimony
  • Active duty military pay (includes National Guard pay)
  • Capital gains
  • Prizes or gifts non connected with employment
  • Compensatory insurance proceeds derived from property damage or personal injury settlements
  • Patent and copyright income
  • Royalties derived from intangible property
  • Housing allowances for clergy to the extent that the allowance is used to provide a home
  • Annuity distributions
  • Health and welfare benefits distributed by governmental, charitable, religious or educational organizations
  • Income of religious, fraternal, charitable, scientific, literary, or educational institutions to the extent that such income is derived from tax exempt real estate, tax exempt tangible or intangible property or tax exempt activities

Note: The above items are not a complete listing. Contact the Tax office at 513.539.7374, option 3 or tax@monroeohio.org, for questions on items not listed on this page.