Nontaxable interest, dividend, and gain income: Include income and gains from investments in direct obligations of the federal government, Pennsylvania, and political subdivisions of Pennsylvania. Include the nontaxable portion of gain from the sale of any property. Include nontaxable income received as a beneficiary of an estate or trust.

Insurance proceeds and inheritances: This amount includes the total proceeds received from life or other insurance policies. Also, include inherited cash or the value of property received.

Alimony: Enter the amount of federally taxable alimony that you receive.

Gifts, awards, and prizes: Include the total amount of nontaxable cash or property received as gifts from others. Also, include awards given in recognition of civic and social achievements and prizes from all games of the PA Lottery.

Nonresident income: Part-year residents and nonresidents must complete this line, and enter the total of all income earned, received, and realized while residing outside Pennsylvania. This includes income that would be taxable if earned and received in Pennsylvania, and nontaxable PA income that you would report on this schedule if you were a PA resident.

Nontaxable military income: This amount represents the difference between the total military income you earned and the amount you report on your PA tax return. Do not include combat zone pay and hazardous duty pay.

Gain excluded from the sale of a residence: Enter your nontaxable gain.

Nontaxable educational assistance: Include the total value of all nontaxable scholarships, fellowships, and stipends. Also, include the value of tuition reductions offered as part of your employer's benefit plan.

Cash received for personal use from outside your home: Include the following kinds of nontaxable income when determining your Eligibility Income:

• Support you receive from a spouse or former spouse who does not live in your household. Do not include payments you receive for child support here--see the instructions for Part B.
• Any payments received from other persons outside your household, including nontaxable cash or property received for personal use, such as cash received from a parent to buy clothing, or gifts from grown children. Do not include monies paid pursuant to a cost-sharing arrangement.
• Nontaxable payments to your employer's cafeteria plan for hospitalization, sickness, disability, or death, supplemental unemployment, or strike benefits.
• Payments received as a foster parent for providing in-home care for foster children.

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