when you file your taxes you can choose between taking the standard deduction or itemizing your deductions examples of itemized deductions include medical expenses mortgage interest and charitable donations 
examples of exempt incomedistributions from health savings accounts hsas are only exempt from income tax if they are used for qualified medical expenses qualified distributions from roth 401 k plans and roth iras funded with after tax dollars are tax exempt 8910other investments may also be protected from income tax for example interest earned from municipal bonds is exempt from federal and state income tax if you reside in the state where the bond was issued capital losses from sold investments can also reduce your taxable income by up to 3 000 annually 1112if someone dies and you are the beneficiary of a life insurance benefit that is also nontaxable income but may be subject to estate tax 1314 the estate tax or death tax applies to a portion of an estate after it exceeds a certain threshold 12 92 million in 2023 and 13 61 million in 2024 4the alternative minimum tax amt exemptions are in effect until 2025 15 the 2023 exemption amount was 81 300 with a phase out of 578 150 for individuals and 126 500 for married couples filing jointly with a phase out of 1 156 300 for tax year 2024 the exemption is 85 700 for single filers and begins to phase out at 609 350 for married couples in 2024 it s 133 300 for married couples filing jointly with phase out at 1 218 700 4