Article Posted on 07/11/2019
One thing that surprises the many taxpayers is that some income is not subject to tax.
Here are a few examples:
- Gifts and most inheritances
- The gain on the sale of your house up to $250,000 of gain, and a married joint-filing couple can exclude up to $500,000 of gain. There are some limitations. Warning there are a few tests you must meet.
- Life insurance proceeds
- Cash rebates on personal items purchased
- Frequent flier miles
- Certain court awards and damages
These are a few items that are not taxable, unfortunately most items are subject to tax.