Here are some types of income that you do not have to pay tax for:

Company’s Compensation

The following compensations paid by your company is tax free: health insurance premiums, hospitalization insurance premiums, life insurance coverage of $50,000 or less, cafeteria plans and education fees. Your company can also give you discount fare cards or passes to take public transportation to work tax-free.

Selling Your Home

If you have been mainly living in your house the past 2 out of 5 years and you would like to sell it, as much as $250,000 in gain or $500,000 on a joint return can be excluded. Also, you can claim the exclusion every two years!

Income from Interest

If you earn interest from bonds that were issued by a state, territory, municipality or any political subdivision is free from federal taxes, their tax benefit increases in value as your marginal tax rate goes higher.

Car-pool

Any income that you receive from a carpool to carry passengers to and from work are commuting costs and are not deductible.

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