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Cash In: Beat the Taxman with 11 Tax-Free Income Breaks

Posted by Admin Posted on Sept 30 2022

Do you know all the ways to collect tax-free income?  Surprisingly enough, there are still more than a few ways to do it.  Here’s a summary of what we think are the best federal-income-tax-free opportunities for individual taxpayers. 

 

  1. Roth IRAs
  2. Social Security benefits up to the taxable limits
  3. Tax-free IRA withdrawals (on top of tax-free Social Security)
  4. Home sale gains of up to $250,000 ($500,000 if married, filing jointly)
  5. Tax-free capital gains and dividends when you hit the sweet spot
  6. Capital gains sheltered with capital losses
  7. Stepped-up inherited assets
  8. Section 1031 real estate exchanges when held until death
  9. Qualified small business tax gains
  10. Section 529 college savings plans
  11. Coverdell Education Savings Accounts

 

When it comes to tax planning, tax-free tops the list.