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.
Let's take an example, if a policyholder doesn't make a claim during the tenure of his
auto insurance policy, he becomes eligible for No Claim Bonus,
on the basis of which, a certain
rebate is offered
on the payable
premium.