Whether a lawsuit settlement is taxable depends on what the money is meant to replace, because the IRS taxes it based on the origin of the claim. Some settlements are fully tax-free, while others are taxed like ordinary income.

Unemployment benefits are taxable, counted as federal income in the year you receive them, and taxed by most states as well. The risk is a surprise bill, since taxes are not withheld unless you ask.

Workers’ compensation is not taxable, so benefits for a job-related injury or illness are free of federal and state income tax. One narrow exception applies when the benefits interact with Social Security disability.

Inheritance is generally not taxable to you at the federal level, because inherited money and property are not counted as income. A few specific assets, and a handful of states, are the exceptions.

Life insurance is generally not taxable, because the death benefit your beneficiaries receive passes to them free of federal income tax in most cases.

Whether disability income is taxable depends on where it comes from and who paid for it, since some benefits are fully tax-free and others are taxed only above certain income levels.

Child support is not taxable, meaning the parent who receives it does not report it as income and the parent who pays it cannot deduct it.

Whether alimony is taxable depends on when your divorce or separation agreement was finalized, since a 2019 tax-law change flipped the rules.

Paying rent with a credit card is usually possible, but almost always for a fee, whether your landlord takes cards directly or you route the payment through a third-party service.