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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.
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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.
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Search results for 'Exempt Income'
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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. ...
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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. ...
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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 ...
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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 ...
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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 ...
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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 ...
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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. ...
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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. ...
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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. ...
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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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