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Two things in life are certain: death and taxes. Both are grim, but there’s some good news about the latter. No matter what line of work you happen to find yourself doing these days, you know that the government has to take a bite out of your paycheck on a state and federal level. However, what’s less commonly known is that there are seven bonafide types of income that are non-taxable. You don’t need to be a CPA to keep these earnings tax free. Here’s a handy-dandy review of all the non-taxable incomes you might qualify for.
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Did you know that most gifts, bequests and inheritances can go right into your banking account, and you don’t have to worry about the tax collector coming by to ask for a piece of the pie? Now that’s a present to keep in mind. But it can’t be that easy, right? You might be asking yourself if you aren’t paying the taxes on a gift, then who is. According to the Internal Revenue Service (yep, the IRS themselves), the answer is that “the donor is generally responsible for paying the gift tax. Under special arrangements the done may agree to pay the tax instead.” Thanks for the gift that keeps giving, Uncle Sam.
Being a parent is tough these days and sometimes it can put a strain on a partnership. When divorce or separation happens and there are kids involved, most likely one of the parents will be contributing to child support payments. If you are the parent receiving those funds, breathe easy because they are non-taxable. Child support falls under the category of a “tax-neutral” event. The Market Realist breaks down that “Since the parent paying child support is theoretically paying funds to cover basic living expenses for their child, child support isn’t a tax-deductible expense.” This is one less thing to have to worry about as a parent who receives monetary support while raising children.
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We all love cash, but how many of us are taking real advantage of cash rebates that are given out to customers from manufacturers or dealerships? “A rebate is not subject to tax; it is considered a reduction of the item’s price and works in the same way as a direct discount,” explains DoNotPay.com. But keep an eye on the fine print, since rebates can sometimes come with other strings attached, and you’ll want to know what you are signing up for before you spend the money.
Here’s just what the doctor ordered: most-emphasis on most-health benefits are not able to be taxed. This is because the Affordable Care Act does not classify health insurance as income which is subject to a tax. This even includes employer provided benefits. However, keep in mind that depending on what your health insurance policy is, many of the benefits covered are taxable. Check with your insurance company about how this might affect you when it comes time to file your taxes so your heart doesn’t skip a beat or two.
The definition of “alimony” from the IRS is: “Amounts paid to a spouse or a former spouse under a divorce or separation instrument (including a divorce decree, a separate maintenance decree, or a written separation agreement) may be alimony or separate maintenance payments for federal tax purposes.” The tax laws have changed a lot and depending on when a divorce occurred, it could determine who pays whom and how much. Any separation or divorce finalized on or before December 31, 2018, means that the person who receives the alimony money would pay federal income tax. However, since Jan. 1, 2019, those taxes are now owed by the party in the separation or divorce who is making the alimony payments.
Welfare or federal financial assistance are programs that help millions of Americans receive benefits every year, including Social Security, Aid to Families with Dependent Children (AFDC), food stamps and other social welfare programs. If you are receiving these or other benefits, the government does not wish to put any more financial burden on you, so they are typically not taxed. Ask a certified accountant if you should include welfare payments when you file your taxes in case you should be subject to an audit down the road.
Qualified Adoption Expenses, commonly referred to as QAEs in the tax world, are “the necessary costs paid to adopt a child younger than 18 years of age or any disabled person who requires care” as described by Investopedia. The IRS classifies expenses such as fees related to the adoption, attorney costs, court fees, travel, and several others as QAE, so long that they are “reasonable” and “necessary.” Use the money you save to treat your adopted family to a lifetime of love and care.
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This article originally appeared on GOBankingRates.com: What Types of Income Aren’t Taxable?
(Bloomberg) — Wall Street hopes that the Federal Reserve might be able to ease up on its battle against inflation later this year were decisively dashed Thursday when consumer price index data for September came in unexpectedly hot. Core CPI, which excludes food and energy, increased 6.6% from a year ago, the highest level since 1982. Most Read from BloombergIntel Is Planning Thousands of Job Cuts in Face of PC SlumpHere’s How Weird Things Are Getting in the Housing MarketPutin Says All Infrast
Core CPI, which strips out volatile food and energy components, jumped to 6.6% over the period, higher than forecast, and the highest since 1982.
Insiders at Verizon Communications Inc. ( NYSE:VZ ) sold US$1.2m worth of stock at an average price of US$49.77 a share…
Shares of Moderna surged more than 11% on Wednesday after the biotech company [announced](https://investors.modernatx.com/news/news-details/2022/Merck-and-Moderna-Announce-Exercise-of-Option-by-Merck-for-Joint-Development-and-Commercialization-of-Investigational-Personalized-Cancer-Vaccine/default.aspx) it would develop and sell a personalized cancer vaccine with Merck. The stock was the biggest gainer on the S 500 around midday. Shares of Merck were little changed. Merck will pay Moderna $250 m
Does the October share price for Apple Inc. ( NASDAQ:AAPL ) reflect what it's really worth? Today, we will estimate the…
Energy inflation remains a serious concern. Protect your portfolio.
U.S. stocks fell Thursday after inflation data showed that consumer prices climbed more quickly than expected.
If you bought $1,000 worth of AMC Entertainment Holdings (NYSE: AMC) stock at its all-time high of $62 in June 2021, you would have roughly $100 today — a decline of 90%. While the movie theater operator seems to be recovering nicely from the COVID-19 pandemic in 2020 and 2021, massive levels of equity dilution could leave investors holding the bag. At the height of the crisis in 2020, AMC's revenue collapsed by 77% to $1.24 billion against the prior year, and it lost $4.59 billion.
Even after getting blasted by the bear market this year, top semiconductor company Nvidia (NASDAQ: NVDA) currently trades for 38 times trailing-12-month earnings, or 45 times enterprise value (EV) to trailing-12-month free cash flow.
The company is using some of its financial flexibility to boost its ability to cash in on oil prices.
One of the worst-performing sectors this year is the one associated with mortgages. Mortgage originators saw major declines in origination volumes as rising interest rates removed the consumer's incentive to refinance. Mortgage real estate investment trusts (REITs) have also been beaten down this year as interest rates have increased.
The Dow Jones Industrial Average dived Thursday on hot inflation data from the consumer price index. The 10-year Treasury yield topped 4%.
The headwinds have piled up for the US economy, and today’s producer price index, coming in well above the forecasts, was just the latest blow. As the PPI reminds us, inflation is stubbornly high, and compounding on last year’s elevated numbers. In addition, we’re facing a 1H GDP contraction, a nosedive in consumer confidence, shaky supplies chains, and the Federal Reserve’s rapid shift to hiking interest rates. And all of that may just be the tip of the iceberg. Billionaire investor Ray Dalio s
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Tesla bears have been on a roll over the past two weeks — opening increasingly intense bearish option trades against the EV giant in the face of the stock's continued plunge.
Inflation is high, the Fed is aggressively hiking interest rates, and the markets keep testing their lows for the year. The rest of this week will see several key monthly reports, including the consumer price index, or the inflation report, on Thursday. Currently, inflation is up 8.3% since last year, and economists are expecting that number to decline to 8.1%. Jim Cramer, the well-known host of CNBC’s ‘Mad Money’ program, is finding a silver lining in the current situation, telling investors, “
The big question: Has the market hit a bottom yet? Well, according to Oppenheimer's Head of Technical Analysis Ari Wald, there are signs one is forming, the most notable of which is that the Russell 2000 index – the barometer for small-cap stocks – “held to the June lows in the most recent late Q3 move to the downside." Wald also notes that the signal of a market top is when the S&P 500 makes a “higher high, and small caps make a lower high," and we are currently seeing the opposite scenario pla
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It has been awful time for investors in media company Warner Bros. Discovery (NASDAQ: WBD). The potential synergies and economies of scale looked to position the combined company well to compete in the media and entertainment industry. Since the merger was structured so that AT&T would spin off its holding of WarnerMedia and then merge the company with Discovery, AT&T investors  got shares of the new company without doing anything.

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