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J.K. Lasser's 1001 Deductions and Tax Breaks 2018 by Barbara Weltman

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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 2017 tax returns.

  • 529 plan withdrawals to pay qualified higher education costs

  • ABLE account withdrawals to cover qualified expenses for a disabled beneficiary

  • Accelerated death benefits under a life insurance policy

  • Adoption costs paid by employer up to $13,540

  • 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

  • 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

  • Damages received for wrongful incarceration

  • 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 ...

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