What do they mean by non-taxable?
submitted by memfis depay

Jeff Cabot

Non-taxable means income, transactions, or things that won't be taxed by the government. A non-taxable amount does not need to be reported as taxable income.

Jeff Cabot

It means it's exempt from income tax.
Non-taxable items don't need to be included in gross income on tax returns.
One example might be certain types of municipal bond interest. Check with your local tax laws, of course.
It's important to distinguish non-taxable from tax-deferred income which will be taxed later.

Ronnie Ekhart

When they say something is non-taxable, you don't have to pay taxes on it. Like if you get a gift or some government benefits that are labeled non-taxable, you can keep the full amount without reporting it on taxes.