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 ?
There are three basic components of the return of a municipal term trust in its final year: 1) the closing of the discount at which the fund is bought, 2) the tax-free distributions, and 3) the tax credit created when the fund pays out the embedded undistributed tax-free income upon the liquidation of the fund.
M2 EQUITYBITES-December 15, 2017-DTF Tax-Free Income declares dividends of USD0.
Why not focus on how much tax-free income heavily funded life policies can provide?
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.
At first glance, the government delivered everything the industry was asking for--a tax credit worth 20% of budgets up to 20 million [pounds sterling] ($36 million), plus a slice of tax-free income to encourage films to find an audience.
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.