Exempt Income

Dictionary Says

Definition of 'Exempt Income'

Certain types or amounts of income not subject to federal income tax. Examples of exempt income include municipal bond income, which may also be exempt from state income taxes, a portion of retirement benefits, qualified Roth IRA distributions and academic scholarships. Also exempt are gifts of less than $10,000 and certain death benefits.

Investopedia Says

Investopedia explains 'Exempt Income'

The Internal Revenue Service (IRS) allows each individual to claim an annual personal exemption, along with an exemption for their spouse and any dependents. The personal exemption amount, although low, is set aside to allow for individuals to have a modicum of untaxed income to pay for basic sustenance items, such as food, clothing and shelter.

Search results for

'Exempt Income'

  • Why Retirees Can't Count On Muni Bonds

    http://www.investopedia.com/articles/bonds/08/tax-equivalent-yield.asp
    ... Municipal bonds, popular fixed-income investments for retirees who want tax-exempt
    income, are no longer offering the kind of tax protection they once did. ...
  • Series 6 Study Guide - Evaluation of Customers - Investment ...

    http://www.investopedia.com/exam-guide/finra-series-6/evaluation-customers/investment-objectives.asp
    This section deals with investment objectives and its characteristics such as
    Preservation of capital, Current income, Tax-exempt income, Growth etc. ...
  • Retirement Savings: Tax-Deferred Or Tax-Exempt?

    http://www.investopedia.com/articles/taxes/11/tax-deferred-tax-exempt.asp
    ... who are either in school or are just starting work are ideal candidates for
    tax-exempt accounts. At these early stages in life, one's taxable income and the ...
  • 10 Sources Of Nontaxable Income

    http://www.investopedia.com/articles/tax/10/nontaxable-invome-sources.asp
    ... Arbitrary Taxation Taxes discourage all activities that are taxed, so why has the
    IRS chosen to exempt these and a few other sources of income when it ...
  • 5 Steps To Forming A Tax-Exempt Nonprofit Corporation

    http://www.investopedia.com/articles/financial-theory/11/how-to-form-nonprofit-company.asp
    ... is a type of charitable organization that the Internal Revenue Service recognizes
    as tax exempt. This type of corporation does not pay income tax on its ...
  • Reporting Your Interest Income

    http://www.investopedia.com/articles/tax/10/interest-income.asp
    ... are taxable at the federal level only; municipal bond interest is exempt from taxation
    of ... Regular taxable interest is taxed as ordinary income, just like an i ...
  • Savings Bonds For Income And Safety

    http://www.investopedia.com/articles/02/121302.asp
    ... Additionally, the interest may be exempt from federal income taxes if the bond
    is used to pay for the bondholder's educational expenses. ...
  • How do I file taxes for income from foreign sources?

    http://www.investopedia.com/ask/answers/07/taxtipforeign.asp
    If you are a US citizen or resident alien, your income (except for amounts exempt
    under federal law), including that which is earned outside the. ...
  • How The Wealthy Slash Their Income Tax Bills - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1211/How-The-Wealthy-Slash-Their-Income-Tax-Bills.aspx
    ... Also, while interest income from US Treasuries is subject to federal income
    tax, it is exempt from state and local income taxes. ...
  • If I pay for a course to learn about trading can I write some of ...

    http://www.investopedia.com/ask/answers/06/investmentcostwriteoff.asp
    ... Safety deposit rent. Not Deductible: Trading commissions; Transfer taxes;
    Tax-exempt income expenses; Short-sale expenses. For more on ...

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