Income Exclusion Rule

Filed Under » ,
Dictionary Says

Definition of 'Income Exclusion Rule'

A rule that sets aside certain types of income as nontaxable. There are many types of income that qualify under this rule, such as life insurance death benefit proceeds, child support, welfare and municipal bond income. Income that is excluded is not reported anywhere on Form 1040.
Investopedia Says

Investopedia explains 'Income Exclusion Rule'

Generally, there is no limit to the amount of this type of income that can be received. One exception is municipal bond interest, which may be counted back as an alternative minimum tax preference item. Income that is excluded from taxation is generally accorded this status as a measure of relief for the recipient (or else as the result of powerful lobbying, as is the case with life insurance.)
Search results for

'Income Exclusion Rule'

  • Financial Implications Of Retiring Abroad - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0112/Financial-Implications-Of-Retiring-Abroad.aspx
    ... claimed the FEIE exclusion for all of it, you wouldn't have any taxable income and
    this would make you ineligible to make a contribution. This rule applies to ...

  • Series 65 Study Guide - Taxation Issues - Corporate and Trust ...

    http://www.investopedia.com/exam-guide/series-65/taxation/corporate-trust-income-tax.asp
    ... Compensation: 4.1 Introduction; 4.2 The Brochure Rule; 4.3 Special ... Corporate Income
    Taxes Corporations get a tax break ... There is a dividend exclusion of 70% that ...

  • Series 7 Study Guide - Risk and Tax Considerations - Income and ...

    http://www.investopedia.com/exam-guide/series-7/investment-risk-tax-considerations/income-taxation.asp
    ... a Short Position; 10.17 Plus Tick Rule; 10.18 Costs ... generally taxed at a lower rate
    than other income. ... typically qualify for a corporate dividend exclusion of 70 ...

  • 10 Sources Of Nontaxable Income

    http://www.investopedia.com/articles/tax/10/nontaxable-invome-sources.asp
    ... more.). Perhaps the most well-known exclusion is that ... meaning that they reduce your
    taxable income by the ... Receive.). An important exception to this rule is gifts ...

  • Series 6 Study Guide - Taxation Issues - Tax Treatment of Variable ...

    http://www.investopedia.com/exam-guide/finra-series-6/taxation-issues/tax-treatment-variable-annuity-contracts.asp
    ... Factors; 10.7 Investment Objectives; 10.8 FINRA Conduct Rule 2310. ... payment is adjusted
    by an exclusion ratio, which is ... paying any tax on the income and investment ...

  • Series 6 Study Guide - Variable Contracts - Annuity Distributions ...

    http://www.investopedia.com/exam-guide/finra-series-6/variable-contracts/annuity-distributions.asp
    ... Factors; 10.7 Investment Objectives; 10.8 FINRA Conduct Rule 2310. ... first and taxed
    as ordinary income, while any ... payment is adjusted by an exclusion ratio, which ...

  • Selecting The Payout On Your Annuity

    http://www.investopedia.com/articles/retirement/05/071105.asp
    ... If your exclusion ratio is 80% on a $1,000 monthly ... tax and $200 is subject to ordinary
    income tax. ... purchased after Aug 13, 1982, the withdrawal rule is LIFO ...

  • Are ETFs subject to the short sale uptick rule?

    http://www.investopedia.com/ask/answers/06/uptickruleETFs.asp
    ... Investing; Investing Basics; Bonds & Fixed Income; Fundamental Analysis; Mutual
    Funds & EFTs; ... Subsequently, an ETF's exclusion from the uptick rule makes it an ...

  • Series 26 Study Guide - Variable Contracts - Annuity Distributions ...

    http://www.investopedia.com/exam-guide/series-26/variable-contracts/annuity-distributions-charges.asp
    ... out (LIFO) basis, so earnings are withdrawn first and taxed as ordinary income,
    while any ... Each payment is adjusted by an exclusion ratio, which is a ratio that ...

  • Will Your Home Sale Leave You With Tax Shock?

    http://www.investopedia.com/articles/pf/06/homesaletax.asp
    ... Part 2.) Furthermore, there are exceptions to the two-year occupancy rule. ... And
    don't think you can only use this exclusion if you ... Income Tax Guide Click Here. ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.60%
$30K Home Equity Loan 5.74% 5.77%
$50K Home Equity Loan 5.45% 5.50%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.46%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.80%
15 Year Fixed 3.09% 3.11%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.38%
5/1 ARM 2.65% 2.69%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.36%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links