Tax-Free Investment Income
Municipal Bonds, Roth Accounts, Your Residence, and Food
Very few sources of income are not taxed. In fact, I can’t think of one that is never taxed. However, some sources of income can be tax-free, as long as you follow all of the rules. Depending on your marginal tax bracket, this tax-free treatment of certain income sources can equate to a significant increase in the true value of that income, in comparison to income from other sources.
Example Linda is the vice president of a large technology company and is paid a high salary. Her income places her in the 33% federal tax bracket, as well as in one ...