Seems like we are always complaining about the taxes we have to pay (understandable!). So, today, I thought I would share some ways you can receive money WITHOUT having to pay taxes!
1. Gifts up to $19,000 per recipient, per year. ($38,000 for married couples wanting to split gifts to their children/grandchildren)
2. Life Insurance Proceeds (unfortunately, someone passes away for these to be paid out)
3. Inheritance. For 2026, no Federal Income Tax if estate is below 15 million (Estate Tax owed above 15 million)
4. Home sale gains up to $500,000 for married couples and $250,000 for individuals (must have lived in residence 2 of last 5 years)
5. Child Support Payments (self-explanatory)
6. Overtime Pay up to $12,500 (the “half” of “time and a half” per FLSA). Phases out above $150,000 income.
7. Qualified Tips up to $25,000. Phases out above $150,000 income.
8. Disability and Workers Compensation benefits from employer funded accident/health plans/SSI.
These are just some of the more common ways to receive money tax-free. As you can see, there are special circumstances that come with each (some unfortunate). However, knowledge is power and understanding the rules can be beneficial in your financial planning and estate planning. This should not be considered as “advice” and is for informational purposes ONLY. Always consult a tax professional.
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Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services are separate from and not offered through Commonwealth.
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