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Tax exempt income |
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Tax exempt incomeDividends and interest not subject to federal and, in some cases, state and local income taxes.Tax exempt income Similar MatchesPersonal exemptionPersonal exemptionAmount of money a taxpayer can exclude from personal income for each member of the household in calculation of a tax obligation. ExemptionExemptionAn allowable expense subtracted from gross income to reduce income tax liability. An exemption can be classified as either personal or dependency and these are further subdivided into exemptions for:individual taxpayerselderly and disabled taxpayersdependent children and other dependants more than half of whose support is providedtotal or partial blindnessa taxpayer's spouse Tax exempt money market fundTax exempt money market fundA money market fund that invests in short-term tax-exempt municipal securities. Tax exempt income fundTax exempt income fundA mutual fund that seeks income that is exempt from federal and, in some cases, state and local income taxes. Tax Exempt Special Savings AccountTax Exempt Special Savings AccountA five year tax free savings scheme for people aged 18 and over, introduced by the government in January 1991 and operated by banks and building societies, but terminated in 1999.The maximum amount which could be paid into such schemes over the five year life of the TESSA was £9,000 according to the following schedule:1st year, £3,0002nd year, £1,8003rd year, £1,8004th year, £1,8005th year £600TESSAs were discontinued on 5th April 1999 although those taken out before then are allowed to run their full five year term. If you own a TESSA, you can do three things with it when it matures:You can withdraw the interest and capital free of tax, and either spend it or invest it elsewhere.You can move the capital into a 'Matured TESSA Account'. The interest earned in the account after the maturity date will be taxable.You can move the capital (but not the income) into an ISA account where it can continue to grow tax free. It can either be paid into a special Tessa-only ISA account (a TOISA) or it can be paid into a cash only mini ISA. The move has to be made within 6 months of the maturity of the TESSA. Further SuggestionsTax exempt sectorSmall issues exemption Exempt securities personal exemption annual exemption Exemption Industrial Tax Exemption Tax exempt bond potentially exempt transfer Short term tax exempts Triple tax exempt Tax exempt security Short exempt |
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