Although most income is taxable, some is not, according to the Internal Revenue Service.
Examples of income that is normally nontaxable includes child support; gifts, bequests and inheritances; welfare benefits; damage awards for an injury or illness; cash rebates for an item you buy; and reimbursements for qualified adoption expenses.
Income from a scholarship normally is not taxable, but any portion used for room and board is, according to the IRS.
For more information and examples, see Publication 525, Taxable and Nontaxable Income. The booklet is available at IRS.gov or by calling 800-829-3676.