07/20/2026
Things to know:
Gifts, inheritances, and life insurance proceeds are never taxable income to the person who receives them, no matter the amount.
The $19,000 annual gift exclusion is a filing requirement for the giver, not a tax on the recipient.
Inherited traditional IRAs are the exception inside that rule: the account passes to you tax-free, but every withdrawal is taxed as ordinary income, while an inherited Roth that met the 5-year rule usually is not.
Qualified tips and overtime pay are federal income tax deductions through 2028, not full exclusions, so Social Security and Medicare taxes are still withheld and your state may still tax the income.
Home sale gains skip tax up to $250,000 for single filers or $500,000 for married couples, as long as you lived there 2 of the last 5 years.
Long-term capital gains can be taxed at 0% when your taxable income stays under $49,450 single or $98,900 married filing jointly in 2026.
Alimony received under post 2018 agreements is not taxable income.
Long term care insurance payouts are not taxable.
VA disability benefits and workers' comp are excluded from federal income tax regardless of the amount.
