Exempt Income

Exempt Income

Any income that is not subject to taxation. Examples of exempt income in the United States include income from municipal bonds, some retirement contributions, interest paid on mortgages, and the personal exemption, among other things. See also: Earned Income Tax Credit.
References in periodicals archive ?
Currently the Trust receives both taxable income and exempt income and is "partially exempt" for VAT purposes.
25, 2010 (CENS)--Taiwan recently signed an agreement with Paraguay to mutually exempt income taxes on individuals of the two nations and/or that related to investments in both nations, aiming to avoid double taxation.
The new law applies to calendar year 2009, allowing refunds of any taxes withheld this year on the now exempt income.
Several potentially contentious options remain on the table, including capping or repealing tax breaks for employer-provided health insurance, both as a deduction for the employer and as exempt income for the employee.
Section 861(a)(1)(A) interest, however, should not be considered exempt income since it is foreign-source income that is exempt from tax under subchapter N of the Code.
Working together, the FSC and AMT provisions effectively whipsaw taxpayers by : (1) re-classifying and taxing 50 percent of this otherwise exempt income as non-exempt FTI in the FSC under section 923(a)(5), and then (2) taxing the same income as exempt FTI to the shareholder under the alternative minimum tax rules provided in Prop.
The new law applies to all of calendar year 2009, allowing refunds of any taxes withheld this year on the now exempt income.
2003-84, (10) allowing tax-exempt-bond partnerships an election to enable partners to take exempt income into account on a monthly basis.
Putnam Europe Equity Fund , Putnam Florida Tax Exempt Income Fund , Putnam Fund for Growth and Income , George Putnam Fund of Boston , Putnam Global Equity Fund , Putnam Global Income Trust
The court held that by offsetting or disallowing legitimate deductions where there is no relationship between the disallowed expense and exempt income, California, in effect, indirectly taxed income it could not tax directly.
In summary, the Company remains committed to executing its business plan and generating steady, predictable distributions of predominantly tax exempt income to its investors.
BOSTON -- Putnam Investments announced that Putnam Tax-Free Health Care Fund (NYSE: PMH) and the open-end Putnam Tax Exempt Income Fund completed their previously announced merger in a closing held today.