7 Things You Won't Pay Taxes on in 2023

Most people have relatively simple tax concerns.  Among the most important is what they have to pay taxes on and what they can keep for themselves. Here's a look at the things of value that the IRS won't take a bite from in 2023 for most people in most situations.

1

Inheritance

In most cases, inheritances -- whether cash, property or investments -- are not taxable at the federal level. There are, however, a few catches.

2

Public Assistance Benefits and Other Government Payments

The IRS does not consider need-based welfare payments nor SNAP benefits to be taxable income.

3

Rebates and Cash Back Rewards

The IRS does not tax cash rebates you receive on items you buy from retailers, dealers or manufacturers. Even better, this rule also applies to many kinds of credit card perks.

4

Child Support and (Some) Alimony Payments

Child support payments are never considered taxable income for the recipient and are never tax deductible for the payer.

5

Scholarship Money, Depending on How You Use It

Scholarship money is not considered taxable income -- with a few caveats.

6

Life Insurance Payments

Life insurance payments are not considered taxable income as long as the proceeds are benefits paid due to the death of the insured person.

6

Qualified Adoption Reimbursements

Tax benefits for people who adopt children include a tax credit of up to $14,890. The IRS also excludes money that your employer reimburses you for qualified adoption expenses from your taxable income.

Stories

More

Tax Experts Answer Your Most Pressing Tax Questions

Taxes 2023: Everything You Need To Know for This Season

3 Ways Smart People Save Money When Filing Their Taxes

See More

See More

See More