Thank you @RobertB4444. I appreciate your response.
I interpret what you wrote to be a confirmation of what I speculated in my last post... that is that even if the accrued market discount is treated as interest, it is not in fact interest paid by the US Treasury to the bondholder and therefore is NOT exempt from state income tax in any state.
So you are saying that any interest from accrued market discount on a US Treasury Note is NOT exempt from income tax in any state.
Do I understand what you wrote correctly?
If so, do you have any links to sources (expert's articles or tax related sources) you can post that support this conclusion?
Thanks again.
