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General obligation bonds: This type of municipal bond allows the government to tax residents in order to pay back bond holders. They aren’t necessarily backed by a specific government project ...
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Not only do municipal bonds pay interest (generally twice a year), but that interest is always exempt from federal taxes. And if you buy municipal bonds issued by the state you live in, you can ...
A municipal bond, commonly known as a muni, is a bond issued by state or local governments, or entities they create such as authorities and special districts. In the United States, interest income received by holders of municipal bonds is often, but not always, exempt from federal and state income taxation.
Buying bonds directly from the U.S. Treasury: The U.S. federal government allows you to buy Treasury bonds directly through a service called Treasury Direct. This allows you to avoid a middleman ...
1. Municipal bonds. Unlike conventional bonds, where interest income is taxed at your ordinary income rate, municipal bonds offer tax-free interest income at the federal level. In some cases, you ...
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