Even with the various tax increases that have happened in recent years, there are still ways to earn income that’s free from federal income tax. Here are 10 tax-free income sources for you to take advantage of:

1. Gifts and Inheritances

If you receive a gift or inheritance, the amount is not generally taxable. However, if you inherit or are given property that later produces income, such as rent or interest, the income is taxable to you.

2. Tax-Free Home Sale Gains
Selling your home is one of the best tax-saving ways to earn income. An unmarried seller of a principal residence will pay no federal income tax up to $250,000 of gain, and a married joint-filing couple can exclude up to $500,000 of gain. However, there are some limitations to qualify

3. Life Insurance Proceeds
Proceeds from a life insurance policy paid to you because of someone’s death are not taxable. _This also includes proceeds paid under an accident, health insurance policy, or an endowment contract.) But if you redeem a policy on your own life for cash payment, any amount more than the cost of the policy is taxable. In addition, any interest income received as a result of life insurance proceeds will be taxable.

4. Income from Tax-Free Roth IRAs
Roth accounts have two big tax advantages, which include offering tax-free income.

The first advantage of a Roth IRA is tax-free withdrawals. Unlike traditional IRA withdrawals, qualified Roth IRA withdrawals are free from federal income tax (and sometimes even state income tax). So, what is a qualified withdrawal? In general, it’s a withdrawal taken after the Roth account owner has met both of the following requirements:

  1. He or she has had at least one Roth IRA open for over five years.
  2. He or she has reached age 59 1/2, is disabled, or deceased.

The second advantage of a Roth IRA is an exemption from the required minimum distribution rules. Unlike a traditional IRA, the original owner of a Roth account is not burdened with the obligation to take the required minimum distributions (RMDs) after age 70 1/2 or face a 50% penalty. This gives you a way to leave your heirs with an Roth IRA untouched, assuming you don’t need the savings to cover your retirement-age living expenses.

5. Section 529 Accounts
The main advantage of 529 college savings plan accounts is they accumulate earnings free of any federal income taxes. When your child, or the beneficiary, reaches college age, withdrawals free from federal income tax can be taken to cover his or her higher education expenses.

Also, contributions to the 529 college savings plan are eligible for the $14,000 annual federal gift-tax exclusion. Contributions up to the exclusion amount won’t diminish your unified federal gift and estate tax exemption ($5.49 million in 2017, up from $5.45 million in 2016).

You can also make a larger lump-sum contribution to a 529 account. This offers you a way to spread it over five years for gift-tax purposes to immediately benefit from five years’ worth of annual gift-tax exclusions while getting a head start on a college fund. You make this five-year spread election by filing the IRS gift-tax return form.

6. Tax-Free Coverdell Education Savings Accounts
If you’re not able to afford a 529 savings plan, you also have the option of contributing up to $2,000 annually to a Coverdell Education Savings Account (CESA). A CESA account needs to be set up by a “responsible person” over age 18 tto function as an education savings vehicle for the account beneficiary.

CESA earnings will accumulate federal-income-tax-free, and tax-free withdrawals can be taken to pay for college tuition, fees, books, supplies, and room and board. If you have several beneficiaries in mind, you get separate CESAs set up for each one. However, the right to make CESA contributions is phased out if your modified adjusted gross income (MAGI) reaches certain levels.

7. Cash Rebates for Purchases
A cash rebate received from a retail store or manufacturer for an item you buy is never income. However, you have to reduce your tax basis by the amount of the rebate. For example, you buy a new car for $25,000 and the manufacturer sends you a $2,000 rebate check. Although the $2,000 is not income to you, your basis in the car is now $23,000. This basis is used to calculate gain or loss if you sell the car and to calculate depreciation if you use the vehicle for business purposes.

8. Tax-Free Capital Gains and Dividends
Thanks to current tax law legislation, the federal income tax rate on long-term capital gains and qualified dividends is still 0% when they fall within the 10% or 15% regular income tax rate brackets. The surprising truth is you can earn a pretty healthy income and still be within the 15% bracket and thus qualify for the 0% rate on some or all of your long-term capital gains and dividends.

9. Qualified Scholarships
Payments received from a qualified scholarship are normally not taxable. Amounts you use for certain costs, such as tuition and required course books, are not taxable. However, amounts required to be used for room and board are taxable.

10. Court Awards and Damages
Compensatory damages for personal physical injury or physical sickness (received in a lump sum or installments) are free from federal tax. However, punitive damages are taxable. Awards for unlawful discrimination or harassment are also taxable. If you receive a court award or out-of-court settlement, consult with your tax advisor about the tax implications.

While most sources of income are taxable, you may be fortunate enough to receive income with no federal tax headaches. Consult with your tax advisor for more information on whether or not the above sources apply to your situation.