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Using library resources or an Internet search, determine the types of income that are exempt from...

Using library resources or an Internet search, determine the types of income that are exempt from federal income tax.

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Answer #1

Some of the types of income that are exempt from federal income tax are :

  • Supplemental and private disability insurance benefits
  • life insurance payouts
  • gifts upto $15,000
  • municipal bond interest
  • distributions from health savings accounts
  • estate tax upto an estate inheritance thershold of $11.2 million for individuals and $22.4 million for married couples
  • veteran's benefits
  • disaster relief payments
  • Medicare benefits received
  • scholarships
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