The Carr Report: The IRS can’t touch this income!

As I was thinking of a title for this article, MC Hammer’s “U Can’t Touch This” song started playing in my head. So I ran with it. The IRS is known for taxing all sources of income and all profits made from the sale of all consumer goods and services including profits made from the sale of stolen goods. You read that correctly! Tax laws require individuals to report all income, regardless of its source, including income obtained through illegal means. In this article, I wanted to delve into a few income sources and benefits the IRS can’t touch. I use the expression “can’t touch” loosely because the IRS can update tax laws at any given time, making non-taxable income taxable. Below I’ve isolated various incomes that fall outside the tax purview of the IRS. Understanding these exceptions is crucial for individuals navigating the complex landscape of taxation. Here we delve into the intricacies of income that the IRS doesn’t tax. Certain Social Security Benefits:& Depending on your income level and filing status, a portion of your social security benefits may be tax-free. Generally, if social security benefits are your only source of income, they are not subject to federal...