It might feel as if the IRS taxes most of your hard-earned money, but some types of income are nontaxable.

Taxable income is the portion of your income that the IRS considers subject to federal income tax. It includes both earned income, such as wages and self-employment earnings, and unearned income, such ...

Not all income is taxable. Our guide covers common types of non-taxable income, including gifts, inheritances, and certain benefits, plus new 2025 rules for tips and overtime.

For advisors constructing income-focused portfolios, understanding after-tax yield is critical to managing client outcomes.