Tax-Exempt Interest

(redirected from Tax Exempt Interest)

Tax-Exempt Interest

In the United States, interest on a bond not subject to federal taxes. Generally speaking, tax-exempt interest comes from a municipal bond. It is also important to tax-efficient funds because dividends on these funds coming from tax-exempt interest are also tax free. However, tax-exempt interest is required to be reported to the IRS and may affect one in other ways, notably on eligibility for Social Security benefits.

Mentioned in ?

References in periodicals archive ?

Planning for lower premiums shouldn't include shifting to municipal bonds, however, because tax exempt interest income is counted in your MAGI for this purpose.

Year-end retirement tax planning

Low Tax Exempt Interest Rates: While today's tax exempt rates are almost identical to taxable rates, historically tax-exempt rates have been, on average, 1% lower than taxable rates.

Historically low interest rates make 80/20 program more attractive

The adjusted net minimum tax for any year is the AMT for that year reduced by the amount that would be the AMT if: (1) the only adjustments were those concerning the limitations on certain deductions (such as state taxes, certain itemized deductions, the standard deduction and personal exemptions); (2) the only preferences were those dealing with depletion, tax exempt interest, and small business stock; and (3) the limit on the foreign minimum tax credit did not apply.

Alternative minimum tax

First, further reductions were suggested in the benefits that property-liability insurers received from tax exempt interest and dividends and second, a stiff new minimum tax was proposed for these companies.

Tax reform's impact on insurance industry stock returns

These discounts qualified for treatment as tax exempt interest under Code Section 103(a).

Discounts on municipal taxes held exempt interest

Financial browser ?

Full browser ?

CITE

Site: Follow: Share:

Open / Close