The following types of income are nontaxable to both residents and nonresidents.
Nontaxable income includes:
Gifts, inheritances, bequests and distributions of principal from estates and trusts.
Proceeds from insurance, pensions, annuities and retirement benefits (including Social Security) even if taxable under the Internal Revenue Code.
Unemployment compensation, supplemental unemployment benefits, welfare relief payments and workers compensation.
Interest from U. S. obligations such as Savings Bonds and Treasury Notes, obligations of the states, or subordinate units of government of the states.
Compensation for service in the U. S. armed forces, including reserve components.
The following items are nontaxable to nonresidents:
Interest, dividends and royalty income.
Income from trusts and estates.
Qualified deferred compensation properly reported on a Form 1099-R.