Five income types exempt from taxes for Americans

Americans must file their taxes by April 15 to avoid penalties. The IRS has processed millions of returns, with the average federal refund increasing to $3,453 this year, up from $3,213 last year. Five types of income are tax-exempt: child support payments, inheritances, profits from selling a home, Roth IRA income, and gifts. While these incomes are not taxed, some may have specific conditions or state taxes. Taxpayers can file for an extension until October 15 using Form 4868. The IRS advises caution against scams and offers options for free tax filing.