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17TRS
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Tax wise, what is the difference between tax exempt interest & exempt-interest dividends?

State is Florida
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1 Reply
JotikaT2
Employee Tax Expert

Tax wise, what is the difference between tax exempt interest & exempt-interest dividends?

Tax exempt interest is interest income that is not subject to federal income tax. Typically it could come from state sourced municipal bonds or US Treasury Securities.  Many times, these bonds are exempt from state income taxes.

 

Exempt interest dividends are distributions from a mutual fund that is not subject to federal income taxes but they may be subject to state income taxes.

 

 

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