APPENDIX B Checklist of Tax-Free Items
When items are not included in income, and in some cases not even reported on the return, there are considerable tax savings. Here is a list of tax-free items for 2014 tax returns.
- 529 plan withdrawals to pay qualified higher education costs
- Accelerated death benefits under a life insurance policy
- Adoption costs paid by employer up to $13,100
- Awards to certain employees (usually up to $1,600)
- Bequests
- Black lung benefit payments
- Capital gains and capital gain distributions for those in the 10% or 15% tax bracket
- Charitable transfers of IRA distributions up to $100,000 by those age 70½ and older (if this rule is extended for 2014)
- Child support payments
- Coverdell education savings account withdrawals to pay education costs
- Crime victim payments from a state fund for this purpose
- Damages received for personal physical injury
- Debt discharged during insolvency or bankruptcy
- Dependent care expenses paid by employer up to $5,000
- Disability payments under a policy in which you paid the premiums
- Disaster relief payments and disaster mitigation grants
- Discounts on purchases you make
- Dividends for those in the 10% or 15% tax bracket
- Education courses paid by employer (fully ...
Get J.K. Lasser's 1001 Deductions and Tax Breaks 2015: Your Complete Guide to Everything Deductible now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
