7. Other exclusions from income
According to the IRS, there are a plethora of non-taxable payments that are related to your disability. So, if you’re not sure whether or not you qualify for exclusions from income, luckily, we’ve compiled a list. Below you’ll find several exclusions from income:
- In case you’ve received benefit payments from a public welfare fund, the amount of money received is not taxable.
- Another exclusion from income is compensatory damages for physical sickness or injury.
- Compensation for permanent loss of use of a body part or entire body falls into the same category as well.
- You can benefit from an exclusion if you’ve had a car accident that wasn’t your fault, and due to it, you are now incapable of earning money.
