What Is Tax Indexing? Tax indexing is the adjustment of the various rates of taxation in response to inflation and to avoid bracket creep. Bracket creep occurs when inflation drives income into higher tax brackets, resulting in higher income taxes but no real increase in purchasing power. Tax indexing attempts

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What Is IRS Publication 525? Publication 525, Taxable and Nontaxable Income, is a document published by the Internal Revenue Service (IRS) detailing what types of income taxpayers should consider taxable or nontaxable when filing tax returns. A taxpayer’s income can come from a number of sources other than regular employment.

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