Five times where you don't pay tax
Insurance policy pay-out, alimony and maintenance are among other types of income not taxed
Did you know that an insurance policy pay-out and alimony and maintenance among other types of income are not taxed in the hands of the recipient? It is prudent to be aware of these types of income should you find yourself in a situation where you’re a receiver of such income. Here we’ll deal with pay-outs from the Unemployment Insurance Fund (UIF), insurance policies, workmen's compensation, death pay-outs by an employer and alimony or maintenance. UIF Any payment that you receive from the UIF is tax-free. This includes a pay-out as a result of being without a job or because of maternity leave. If you have taken maternity leave and are planning on or have received a payment from the UIF, you will not pay tax on this income. Insurance policies Many people have insurance for various possibilities that may eventuate. Common examples include disability, death, illness or unemployment (separate from UIF – this is a private insurance policy). If you have an insurance policy and it pays o...
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