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2. Income that is not considered gross income for tax purposes. Exclusions include gifts, inheritance, and some others. It is important to note that just because a type of income is an exclusion, it does not mean that it is not taxed; it simply may be taxed differently. Exclusions are stated in the U.S. Tax Code.
Medical services that insurance companies do not pay for are called exclusions. A typical exclusion is a wartime injury or a self-inflicted wound.
But coverage for certain pre-existing conditions, or health problems you had before you were covered by the policy, may also be excluded on some policies.