When items are not included in income, and in some cases not even reported on the return, there are considerable tax savings. Here is a list of tax‐free items for 2022 tax returns.

• 529 plan withdrawals to pay qualified education costs
• ABLE account withdrawals to cover qualified expenses for a disabled beneficiary
• Accelerated death benefits under a life insurance policy
• Adoption costs paid by employer up to $14,890 in 2022
• Awards to certain employees (usually up to $1,600)
• Bequests
• Black lung benefit payments
• Capital gains and capital gain distributions for those with taxable income below a set amount
• Charitable transfers of IRA distributions up to $100,000 by those age 70½ and older (reduced by post‐70½ IRA contributions)
• Child support payments
• Coverdell education savings account withdrawals to pay education costs
• Crime victim payments from a state fund for this purpose
• Damages received for personal physical injury
• Damages received for wrongful incarceration
• Debt discharged during insolvency or bankruptcy
• Dependent care expenses paid by employer up to $5,000
• Disability payments under a policy in which you paid the premiums
• Disaster relief payments and disaster mitigation grants
• Discounts on purchases you make
• Dividends for those with taxable income below a set amount if the dividends are “qualified”
• Education courses paid by employer (fully excluded if job‐related; up to $5,250 if not job‐related)
• Federal Employees' Compensation Act (FECA) payments for personal injury or sickness (including death benefits to beneficiaries)
• Federal income tax refunds
• Flexible spending arrangement contributions from salary for health care or dependent care
• Foreign earned income up to $112,000
• Foster care payments
• Foster Grandparents Program payments for supportive services or reimbursement for out‐of‐pocket expenses
• Frequent flyer miles you earn
• Fringe benefits from employers (“perks”) if they are de minimis, an employee discount, working condition fringe benefits, or transportation fringe benefits
• Gifts
• Grants for homes designed for wheelchair living of disabled veterans
• Grants for motor vehicles for veterans who have lost their sight or the use of their limbs
• Health insurance tax credit for coverage months (the portion of premiums paid by the federal government)
• Health reimbursement arrangement (employer plan)—all reimbursements
• Health savings account distributions to pay for medical costs
• Historic preservation grants under the National Historic Preservation Act
• Home sale gain up to $250,000, or $500,000 on a joint return
• Inheritances
• Interest on insurance dividends left on deposit with the Department of Veterans Affairs
• IRA rollovers
• Life insurance proceeds
• Long‐term care benefits under a policy to pay for the care of someone chronically ill ($390 per day limit in 2022 if benefits are paid under a per diem contract)
• Meals and lodging furnished on the employer's premises for the employer's convenience (accepting onsite lodging must also be a condition of employment)
• Military benefits, including combat pay and death benefits
• Minister's housing allowance
• Mortgage assistance payments under Section 235 of the National Housing Act
• Mortgage debt cancellation on a principal residence up to $750,000, or $375,000 for married filing separately
• Mortgage loan proceeds (including proceeds on refinancing)
• Municipal bond interest
• Nutrition Program for the Elderly food benefits
• Payment for wrongful incarceration
• Peace Corps payments for housing, food, utilities, and clothing
• Prizes to certain employees (usually up to $1,600)
• Public safety officers' survivor benefits
• Rebates on purchases you make
• Restitution payments for Nazi victims and victims of human trafficking
• Retirement planning advice paid for by an employer
• Roth IRA distributions (all contributions, plus earnings in the account for at least 5 years that are withdrawn after age 59½, or on account of disability, death, or first‐time homebuying)
• Savings bond interest if used to pay qualified higher education costs of certain taxpayers
• Scholarships, fellowships, and grants covering tuition, fees, books, supplies, and equipment for a degree program
• SCORE payments for supportive services or reimbursement for out‐of‐pocket expenses
• Senior Companion program payments for supportive services or reimbursement for out‐of‐pocket expenses
• Senior Corps program payments for supportive services or reimbursement for out‐of‐pocket expenses
• Small business stock gain up to 50% (75% of the gain for stock acquired after February 17, 2009, and before September 28, 2010; 100% for stock acquired after September 27, 2010)
• Social Security benefits if your income is below a threshold amount
• Student loan debt cancellation in most cases
• Supplement Security Income (SSI) and Supplement Security Disability Income (SSDI)
• Transportation fringe benefits up to $280 per month in 2022
• Tuition reduction for employees of educational institutions
• Vacation home rental income if the rental is no more than 14 days during the year