Tax-Exempt Income

Tax-exempt income

Dividends and interest not subject to federal and, in some cases, state and local income taxes.

Tax-Exempt Income

Income that is not subject to taxation. Additionally, certain income an individual or corporation derives may be tax exempt, even though the individual or corporation would owe taxes otherwise. For example, coupons from a municipal bond are tax exempt at the federal level. See also: Tax credit, tax deduction.

Tax-Exempt Income

Income that by law is not subject to income tax.
References in periodicals archive ?
Sub-advised by Wellington Management company LLP ("Wellington Management"), this actively managed ETF is designed to provide financial advisors and their clients with an investing strategy that seeks tax-exempt income by investing in opportunities in investment grade and high-yield municipal bonds.
Minimum pay currently stands at 430 euros and tax-exempt income is 170 euros per month, making up 40 per cent of minimum pay.
1366-1(a) (2)(viii) defines tax-exempt income in this context as "income that is permanently excludible from gross income in all circumstances in which the applicable provision of the Internal Revenue Code applies.
The adage, "You can't have your cake and eat it too," indeed applies to federal income taxation at the individual level and tax-exempt income and investment expenses.
Tax-exempt income is included in accounting income for purposes of allocating the trustee fee and depreciation deductions in determining taxable income but is excluded from taxable income.
Basis is increased for $37,000 of income taxed to stockholders and the $500,000 death benefit, which is tax-exempt income.
3) Income that is not tax-exempt is taxed at rates that are not affected by the exemption: households with large amounts of tax-exempt income start pay ing tax at rates well up the income tax scale.
IDIT's also work well when the grantor has a large amount of tax-exempt income or loss carryovers.
If that's the case, consider switching some of your fixed-income investments to municipal bond funds, which pay tax-exempt income.
This should come as no surprise to those of you who understand the advantage of tax-exempt income versus taxable income.
Both the number of filers and and the amount of tax-exempt income grew steadily in subsequent years, with approximately 225,000 additional filers reporting tax-exempt interest in the 1987 to 1991 period.
These include dividends from less-than-20 percent owned corporations; dividends allocable to tax-exempt income of the payor; and dividends subject to [section] 244 (public utility preferred stock) which are not otherwise qualifying dividends.