any or all of these
1) Your state taxes the Tax-Exempt interest...unless it was issued from bonds issued by you own state. IF you did buy your own state's bonds, there is a follow-up question about what state issued the bonds that produced the $$ in box 8. You select "More than one state" if none of them were your state, or check a box and break out just your own state's amount if it's mixed.
2) IF you are getting SS, the amount of SS that is taxed uses a calculation that INCLUDES tax-exempt income.
3) For the Health care mandate...family income includes tax-exempt $ to determine the Premium credit allowed.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
