you don't enter these types of nontaxable income anywhere on your 1040. look at this from the IRS perspective you say that you have nontaxable income. how can the IRS be sure you are not lying and why are you mentioning this. could create the can of worms you are trying to avoid. should the IRS audit and asks about certain deposits you can show the the insurance contract and whatever else you get from the insurance company. if you have a written lease then that would have the security deposit, if not written then you will probably have issued a refund check by the year the IRS does the audit.
