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.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"