@fanfare wrote:
Does tax-free municipal bond interest count as "gross Income" for dependency test?
ChatGPT:
"No, tax-free municipal bond interest does not count as "gross income" for the purpose of the dependency test. According to the IRS, tax-exempt income such as interest from municipal bonds is excluded from gross income when determining if a person qualifies as a dependent."
I think ChatGPT is right about municipal bond interest, but "According to the IRS" is not a meaningful citation. Where exactly does the IRS say that?
You have to be very careful with these AI systems. It's well known that they sometimes make things up or make mistakes.
I don't know what the right answer is about the home sale exclusion. I'm waiting to see if anyone posts a specific authoritative reference. It might hinge on whether "excluded" is the same as "exempt."
