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If you receive a refund on state income taxes that includes interest the interest is nontaxable if the refund is not taxable?
First, a refund of State Income Tax, was deductible when it was paid (and presumably taken as a deduction), and IS taxable when refunded. (You took a tax benefit when paying it, so you have to give back that same tax benefit when you get the tax (or some portion of it) refunded). I can see no reason that the interest wouldn't be taxable. Only certain interest, (from specifically declared but not all Municipal and some other bonds), is not taxable. Otherwise, the source of the interest does not effect it's character as interest, which is taxable. The fact it may be from a government doesn't mean much. Certainly lots of people get paid lots of things from the government that are taxable.
What is the difference between taxable and tax-exempt bonds?
Taxable bonds are subject to federal income tax on the interest earned, while tax-exempt bonds are not subject to federal income tax on the interest earned.
Is interest on bank account taxable or non taxable?
Taxable, of course. Virtually all interest income is taxable, unless fro a specific tax exempt type investment..like state and muni bonds.
Why some bonds are taxable in Federal as well State?
Nearly all bonds are taxable both federal and state. To be exact, the interest the bonds pay is taxable (as well as any capital gain resulting from trading bonds). The reason is that the tax code taxes interest. Bonds are a way of borrowing money and paying interest to the lender. Bonds issued by the federal government are exempt from state taxes. Bonds issued by states and municipalities are mostly exempt from federal taxes (and exempt from taxes in the state that issued them in some states).
Are some municipal bonds taxable?
Yes, it should be reported on your tax return. In general, interest from a municipal is not taxable, but it could affect other items on your return, or be taxable in your state. Proceeds from the sale of a muni bond could be taxable if there is a gain on the sale. This question is too complex to be fully answered in this forum. As always, consult with a tax professional for specific answers. CPA Greg
What is tax exempt municipal bonds?
Tax exempt municipal bonds can be found through government websites. If you invest in these bonds the interest earned are not taxable. It's an incentive to invest in government programs.
Is interest om Federal Home Loan Bank bonds subject to federal income tax?
Yes. Interest from Fed Home Loan Bonds ARE federally taxable and generally are not taxed by states (I live in FL which does not have a state income tax).
How much is the amount of interest one can earn on investments before it is taxable?
ALL investment interest (presumingly from investments that are not entirely tax exempt, like state & muni bonds), is taxable from the first penny. How much tax you ultimately pay depends entirely on your own personal income/expense/deductions/tax situation
Are TReasury I bonds taxable?
Treasury Notes, Bonds and such are direct obligations of the US Government. The interest on these is taxable by the Federal government but is exempt from all State and Local taxes. You should receive a form 1099-INT stating the amount of income in box 3 to include on your return. See the link for more indepth info...especially page 11.
wHA ARE tAXABLE mUNICIPAL bONDS Are they suitable for IRA investments. Why are they issued compared to Tax Exempt Municipal Bonds?
Taxable municipal bonds are bonds issued by governments (municipal bonds) that are NON-tax exempt (most munis are.) They are often better for IRA investments than tax-exempt bonds because they tend to pay higher interest rates and IRAs are tax exempt anyway. They are issued for a variety of reasons (often, they don't count against a bond issuers' cap) but, in part, because they are a good investment vehicle for IRAs and other tax exempt accounts.
Which earns interest stocks or bonds?
bonds
What rates do US Saving Bonds offer?
The current interest rates of US Saving Bonds are 0.2 percent for Series EE Bonds. Series I Bonds have interest rate of 1.18 percent. Series HH Bonds have interest rate of 1.5 percent.
