Definition
Tax-exempt interest income
Interest income that is not subject to income tax. Tax-exempt interest income is earned from bonds issued by states, cities, or counties and the District of Columbia.
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Tax-Exempt Interest
Interest income that is exempt from federal income tax. Although it is not directly taxed, this income may still be required to determine other tax calculations such as Social Security benefits.
Taxable Bond ...
Tax-Exempt Interest Interest on a bond used to finance government operations generally is not taxable if the bond is issued by a state, the District of Columbia, a U.S. possession, or any of their political subdivisions.
Effect of Tax-Exempt Interest in Calculation of Social Security Benefits Subject to Taxation ...
The original issue discount is amortized over the life of the security and, on a municipal security, is generally treated as tax-exempt interest.
A bond issued by a nonprofit college or hospital that pays tax-exempt interest not subject to the alternative minimum tax.
These bonds are issued by local governments to attract new businesses or help local businesses expand. Such bonds offer the usual tax-exempt interest, but are generally considered riskier than bonds secured by the full taxing power of a stable, ...
The formula for the equivalent taxable yield is tax-exempt interest rate divided by 100 minus your marginal tax rate.
 See also: Interest, Income, Bonds, Bond, Municipal Bond
  
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