Under such
policies, taxpayers can receive tax credits worth between 50
percent to 100
percent of their donations to nonprofit
scholarship organizations that help low - and middle - income students attend private schools.
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.