TAX EXEMPT INCOME CHECKLIST

CHAPTER 148-1.03(11)

SECTION 148-1.041(A) defines “Municipal Taxable Income” for a resident as “Income” reduced by “Exempt Income” as listed below:

EXEMPT INCOME CHAPTER 148-1.03
Active duty military pay and allowances (11)(A)
Alimony and child support received (11)(G)
Capital gains (11)(B)
Contributions to a Section 125 Plan (cafeteria or flexible spending account) (11)(L) as defined in
(34)(A)(i)
Disability payments (11)(C)
Dividend income (11)(B)
Election compensation for person serving as precinct election official <$1,000 (11)(E)
Gains from involuntary conversions (11)(J)
Interest income (11)(B)
Insurance proceeds or awards for personal injuries or property damages to the extent that it does not represent wage compensation (11)(H)
Minors’ (< 18 years of age) municipal income (11)(O)
Proceeds of sickness, accident, or liability insurance policies (11)(C)