Does Indiana tax savings bond interest?
Bond Interest States do not tax any interest on U.S. savings bonds. Interest on municipal bonds (other than certain Build America bonds) is tax free for federal income tax purposes. Some exempt interest on all state bonds. These states include Indiana as well as the District of Columbia.
Are savings bonds state taxable?
Interest from EE U.S. savings bonds is taxed at the federal level but not at the state or local levels for income. The interest that savings bonds earn is the amount that a bond can be redeemed for above its face value or original purchase price.
How is US bond interest taxed?
Taxation. Interest income from Treasury securities is subject to federal income tax but exempt from state and local taxes. Income from Treasury bills is paid at maturity and, thus, tax-reportable in the year in which it is received.
What is taxable income in Indiana?
Residents of Indiana are taxed at a flat state income rate of 3.23%.
Is interest income taxable in Indiana?
Indiana As a general rule, interest from Indiana municipal bonds or U.S. government obligations is exempt from Indiana state income tax.
Is US savings bond interest exempt from state tax?
According to the Internal Revenue Service, any interest earned on a U.S. Treasury bill “is exempt from all state and local income taxes.” Therefore, any interest income realized on the sale of a bond is not included in your annual state tax liability.
How do I report savings bonds on my taxes?
If your total interest isn’t more than $1500 for the year, and you’re not otherwise required to report interest income on Schedule B, report the savings bond interest with your other interest on the “Interest” line of your tax return. For more information, see the Instructions for Schedule B (Form 1040).
What is not taxed in Indiana?
NON-TAXABLE FOOD ITEMS The term does not include tobacco, alcoholic beverages, candy, dietary supplements, or soft drinks. The Indiana sales tax does not apply to the sale of food and food ingredients if they are sold unheated and without eating utensils provided by the seller.
Is Indiana tax friendly for retirees?
Is Indiana tax-friendly for retirees? Indiana is moderately tax-friendly for retirees. As described below, Social Security is exempt from the 3.23% flat state income tax in Indiana, while other forms of retirement income are not.
Are municipal bonds tax free in Indiana?
Generally, interest from Indiana municipal bonds and U.S. government obligations is 100% exempt from Indiana state income tax. For mutual fund shares acquired on or after January 1, 2012 (post-2011 shares), this interest is subject to Indiana state income tax.
What is Indiana addback?
An individual who received $421 in interest from bonds issued by another state and purchased after Dec. 31, 2011, will have to “add back” $421 to the amount of income used to calculate the tax obligation for Indiana.