Income the IRS Doesn’t Tax, Did You Overpay for H&R Block? Worst States to Retire Due to Taxes

Types of Income the IRS Doesn t Tax | Did You Overpay for H R Block? | The EV Charger Tax Credit Is Back Created for {EMAIL} | [Web Version]( March 3, 2024 CONNECT WITH KIPLINGER  [LinkedIn]( [Facebook]( [X]( [Youtube]( [Youtube]( [Tax Tips]( [SIGN UP]( ⋅ [WEBSITE]( [] Income Tax [] [Types of Income the IRS Doesn’t Tax]( [Types of Income the IRS Doesn t Tax]( (Getty Images) Knowing the IRS will tax a portion of your earnings can be frustrating. Federal taxable income generally includes wages, tips, royalties, commissions, and for some, up to 85% of Social Security benefits. And that's not an exhaustive list. However, several categories of income are not considered taxable in the eyes of the IRS. Whether income is taxable depends on various rules, requirements, and regulations or whether you're talking about federal or state taxes. [To help sort through it, here is a list of some common types of nontaxable income](. [] In the News [] [Did You Overpay for H&R Block?]( [Did You Overpay for H R Block?]( (Getty Images) You may have heard that the Federal Trade Commission has filed a complaint against tax preparation company H&R Block. The complaint accuses the tax services provider of unfair and deceptive business practices. According to the FTC, H&R Block has "coerced" customers into paying more than they need to, run deceptive "free filing" ads, and implemented unfair downgrade and "data-wiping" policies. Furthermore, the agency claims that H&R Block's vague statements and hard-to-find information have misled customers into thinking they qualify for free filing when they don't. [Have you paid too much for tax filing](? [7 Mistakes to Avoid When Hiring an Advisor]( Working with a financial advisor can be a crucial part of retirement planning. But choosing the wrong one can wreak havoc on your investments. Here are 7 common mistakes to avoid when hiring a financial advisor so you can work towards a more comfortable retirement. [LEARN MORE]( ADVERTISEMENT [] Energy Credits [] [The EV Charger Tax Credit Is Back]( [The EV Charger Tax Credit Is Back]( (Getty Images) Data from the U.S. Department of Energy indicate that most electric vehicle charging occurs at home. Meanwhile, the Inflation Reduction Act contains billions of dollars in tax incentives, including a tax credit for new and used electric vehicles. But did you know that the IRA also brought back the federal tax credit for electric vehicle charging stations and equipment? To take advantage of this tax break, you will want to know how the EV charger credit works and be aware of [new proposals for EV charging networks from major automakers and the Biden administration](. Featured Content Sponsored Content from The Kiplinger Tax Letter [Stop Overpaying on Your Taxes.]( Get a [FREE ISSUE]( of The Kiplinger Tax Letter and never pay one cent more than necessary on your taxes, for yourself, your business, or your clients. Then save up to 58% off the cover price to subscribe, and get exclusive special issues such as New Tax Rules This Year, Year-End Tax Planning, or other topics. [CLICK HERE]( [] Tax Breaks [] [Tax Benefits of Hiring Your Kids]( It can be frustrating when your children complain about having nothing to do — especially when school is out for winter, spring, or summer break. So, why not hire your child or children to work for your business? Doing so can keep them productive and teach valuable skills while potentially lowering your tax bill. That’s because the IRS offers tax breaks associated with having your children perform appropriate and legitimate tasks for your business. However, as you probably would guess, there are important rules to follow. [Read More]( [Do You Need a Retirement Spending Plan?]( Spending your hard earned retirement money can be complicated—and it's important to make the right decisions that will help your savings last. Vanguard Personal Advisor is built to provide you an ongoing collaboration with our professional advisors — no matter where you are in your journey. [LEARN MORE]( ADVERTISEMENT [] In Case You Missed It [] [Worst States to Retire if You Hate Paying Taxes]( If you are looking to save money on taxes while considering your retirement destination, there are certain states you may want to avoid. These states have high property taxes and impose taxes on traditional types of retirement income like Social Security, pensions, and distributions from a 401(k) or IRA. As a result, many retirees may find these places more expensive than other options. [Read More]( [Increase your retirement income – and make it last a lifetime]( Income annuities are paying 25%-45% more than last year. By balancing guaranteed income and income-focused investments, you can increase your income, lower your risk and minimize your taxes. We can show you your increase with a complimentary Go2Income plan. [Order Your Plan]( ADVERTISEMENT [] STOP OVERPAYING ON YOUR TAXES [] [STOP OVERPAYING ON YOUR TAXES]( (Kiplinger) Get a [FREE ISSUE of The Kiplinger Tax Letter]( and never pay one cent more than necessary on your taxes, for yourself, your business, or your clients. Then [save up to 58% off the cover price]( to subscribe, and get exclusive special issues such as New Tax Rules This Year, Year-End Tax Planning, or other topics. [CLICK HERE]( ABOUT KIPLINGER When we write about money, we get it right. So the decisions you make with your dollars are also right. 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