All sorts of income can potentially be tax - free, including: Auto rebates; child - support payments; combat pay;
damages in lawsuits for physical injury; disability payments, if you paid the premiums for the policy; dividends on a life insurance policy, up to the
total of premiums paid; Education Savings Account withdrawals used for qualifying expenses; gifts; Health Savings Account withdrawals used for qualifying payments; inheritances; life insurance proceeds;
municipal bond interest; policy officer survivor payments; profits from the sale of a home, up to $ 250,000 if you're single or $ 500,000 if you're married; qualified Roth IRA and Roth 401 (k) withdrawals; scholarships and fellowship grants; Social Security benefits (between 15 percent and 100 percent are tax - free); veterans benefits; and workers» compensation.