If you are looking to prevent paying higher taxes, consider this list as a general help for you. This list below is comprised of some of the items that you can exclude from your gross income on your tax return.
- Gain on sale of main home (up to $500,000.00 for qualifying married filers).
- Discharge of debt due to bankruptcy or insolvency.
- Social security benefits (up to 85% of benefits may be included in gross income; and 15% minimum may be excluded).
- Gifts and inheritances (generally property received as a gift, bequest or inheritance).
- Scholarships and fellowships (exempt if used for qualified educational expenses).
- Interest on series EE and I savings bonds (when used for higher education purposes).
- Life insurance proceeds (death payouts are generally tax free to beneficiary).