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 ?
Distributions in excess of the first two income tiers are taxed as other income exempt from tax to the extent of current or accumulated tax-exempt income (Regs.
07 per share monthly distribution of tax-exempt income payable on December 31, 2013 to shareholders of record on December 16, 2013.
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.
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.
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.
New Fund Offers Investors Access to Tax-Exempt Income & Less Interest Rate Sensitivity
1366-1 (a)(2)(viii) defines tax-exempt income for purposes of Sec.
5% of all tax-exempt income was reported by taxpayers with adjusted gross incomes under $250,000.
Subsequently, under section 1367, the shareholders' stock basis is increased for their share of the S corporation's items of income, including tax-exempt income, and is decreased (but not to less than zero) for their share of any loss items.
1366(a)(2)(viii) recently was amended to specifically state that the COD income is not tax-exempt income.
The higher your tax bracket, the more advantageous tax-exempt income becomes.