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Note: The writer is not really CPA or tax specialized. This article is for general information purposes, and need to not be construed as tax details. Readers are strongly encouraged to consult their tax professional regarding their personal tax situation.

B) Interest earned, nevertheless paid, during a bond year, must be accrued following the bond year and reported as taxable income for that calendar year in the fact that bond year ends.

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For my wife, she was paid $54,187, which she is not transfer pricing taxed on for Social Security or Healthcare. She gets to put 14.82% towards her pension by law, making her federal taxable earnings $46,157.

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Muni bonds should be owned within your taxable brokerage accounts, and do not in your IRA or 401K accounts because income in those accounts is already tax-deferred.

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In 2003 the JGTRRA, or Jobs and Growth Tax Relief Reconciliation Act, was passed, expanding the 10% income tax bracket and accelerating some among the changes passed in the 2001 EGTRRA.

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