Regarding the house sale, what she probably meant was that since it was her primary home for the past 15 years she qualifies for the home exemption on the sale and any gain up to 250,000 (for singles) is not subject to tax.
When she says that some income was “untaxed,” I’m wondering if the OP means, “from which tax was not withheld.”
Yes, Nothar, that’s what I meant. Thanks for your help. I chose to not have any taxes taken out of the unemployment checks so I will have to pay tax on that. I had $2869 federal tax and $1425 state tax withheld from the W-2 income. Yes, I had/have a mortgage and paid real estate taxes. So… I am preparing to owe. 
Exactly, Tom.