Give ONE example of a income that is not tax. ?

One prime example of income that is not taxable is gifts received from friends or family. As long as the amount doesn't exceed the annual exclusion limit set by the IRS (which is $17,000 per recipient as of 2023), you can receive these funds without any tax implications. So, if Aunt Sally hands you a check for your birthday, you can cash it in without a tax worry! Another interesting non-taxable income is certain types of life insurance payouts. If a policyholder passes away and their beneficiaries receive the insurance proceeds, this money is generally not subject to income tax. It’s a great way to support loved ones financially without any tax burdens on the benefit!