The following sources of income are considered non-taxable:
· Life Insurance Proceeds
· Inheritance: This has the stipulation that if you inherit property and sell that property then you do have to report the property sale as income.
· Child Support Payments do not have to be reported as income by the recipient, but they don't count as deductions for the payer.
· Scholarships, grants, and any other kind of financial aid for education; but it must be used for school or school related expenses.
· Worker's Compensation payments, these also can not be levied if you owe a tax debt. In fact any kind of health or accident benefits is exempt from taxes.
· Benefits received from the Department of Veteran's Affairs.
· Death benefits received by a service member's family.
This is only a sampling of non taxable sources of income, there are many more available at TurboTax