There are several sources of revenue that are not subject to income tax.
Here are the most common sources of money that are not taxed on your federal tax return:
- Borrowed money such as from banks or personal loans.
- Money received as a gift or inheritance from family or friends.
- Money paid on your behalf directly to a school or medical facility.
- Most life insurance proceeds.
- Cash rebates from businesses when you buy an item.
- Child support payments.
- Money you receive for sustaining an injury.
- Scholarships for tuition and books.
- Disability insurance proceeds from a policy purchased with after-tax dollars.
- Up to $500,000 of profit for a couple selling their personal residence.
- Interest received on municipal bonds.
If you have included any of these on your income tax return for the past three years, you can amend your return for a tax refund.
If you need assistance in determining what to include on your income tax return, consult your tax professional.