tax-free income

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-free income

The income received but not subject to income taxes. For example, interest from most municipal bonds is free of federal income taxes and often from state and local income taxes as well. Compare tax-deferred income, tax-sheltered income.
References in periodicals archive ?
And that means that Roth IRAs essentially can make investment income tax-free income.
As many full-time students prepare to find temporary work over the festive period, they may find that they are in line for tax-free income.
The book includes chapters on tax basics and tax planning, tax credits, tax-free income, deferring income, using deductions to reduce taxable income, reducing taxes through investing, shifting income within the household, and choosing the correct filing status and tax exemptions.
The amount of federal tax-free income should be raised to reflect a living wage versus living just above the poverty level.
A reverse mortgage is designed to enable seniors (62+) to convert part of their equity in their home into tax-free income without having to sell their home, give up title or take on monthly mortgage payments.
Now, she has a $5,000 per month benefit that pays $60,000 in tax-free income should she become disabled or need to be on bed rest for another pregnancy.
Congress boosted the business in 1982, when it passed a law allowing claimants in lawsuits involving personal injury, wrongful death and workers' compensation to receive settlements as a stream of tax-free income payments instead of a lump sum.
For investors who have not utilised their pounds 7,000 ISA allowance for this year, there is the opportunity for those seeking a tax-free income to consider a corporate bond ISA, which still provides competitive tax-free income in excess of 5pc-6pc per annum.
Both are donors to the national church's charitable gift annuity plan, which provides donors with some tax-free income during their lives and, after death, provides the church with a contribution.
QMy wife and I have been taking up our PEP allowances for the last four years which is providing us with tax-free income.
In another scenario, an investment banker may create a financing in which a company borrows funds to make a foreign investment, receives an interest deduction for the borrowing and accumulates tax-free income from the investment because of the rules in the foreign country.
A Both IRA is not deductible, but it provides tax-free income after age 59 1/2.