Definition of Non-taxable Wages | Income That Is Not Taxed

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Non-taxable Wages Definition

Term Definition
Non-taxable wages are income sources that attract no taxes and are clearly defined by the Internal Revenue Service.

Extended Definition
The U.S. Dept. of  the Treasury defines income as any wages received in the form of money, services, or property. While income sources like scholarships and insurance premiums are non-taxable, salaries, wages, tips as well as unemployment compensation, are fully taxed by the U.S. government. For a detailed look at taxable and non-taxable wages as well as fringe benefits, check out the IRS definition of taxable and non-taxable income.

Related Blog Article:
What Are Non-taxable Wages?
What Are Taxable Wages?

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