20 Things You Don't Pay Tax On
From Bob Jennings at TaxSpeaker. Check out more at taxspeaker.com
Every other year I give you a list of things AMERICANS don’t PAY Federal income tax on when received. There are exceptions to everything, but here is a pretty comprehensive list for 2026:
Withdrawals of Roth contribution money (earnings exempt under additional rules)
Minister’s housing allowance (but subject to SE)
Combat pay & most VA benefits & service-related disability
Peace Corps living allowance
Long term care insurance payments
Wrongful imprisonment
State funded in-home & foster care payments under difficulty of care rule
Property settlements in divorce, including cash
Child support
Alimony received for divorces after 2018
Scholarships for degree candidates for tuition, fees, books & supplies
Life insurance proceeds and accelerated death benefits
Inheritances
Gifts & Rebates
Qualified employer-provided fringe benefits such as health insurance
Municipal bond interest income
Personal physical injury lawsuit settlements
Disaster relief
Disability and worker’s compensation
Up to $500,000 profit from sale of your personal residence
Comments