Taxation Flashcards
1
Q
How is GNMA income taxed?
A
Interest earned from a GNMA (Ginnie Mae) bond is fully taxable at both the federal and state level.
2
Q
How is income from Treasuries taxed?
A
Interest earned from Treasury bonds are taxable at the federal level but not at the state level.
3
Q
How are Municipal bonds taxed?
A
Munis are exempt from federal income taxes. They may also be exempt from state and local taxes for investors who reside in the issuing state or locality.
