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Form 8815 Chandler Arizona: What You Should Know

No tax. (Note, tax rates were updated in 2011) I. The taxpayer must elect to include interest income earned from a savings bond account in the gross income of the taxpayer. II. Under the “Unified Sales Tax” system, interest income is generally subject to federal taxation and to state or local taxation. Capital gains are excluded from ordinary income and taxed only at the long-term capital gains rate. The following exclusions apply: All interest income on savings bonds: Interest income on savings bonds is excluded from gross income in the following circumstance: (a) Interest on savings bonds is excluded from gross income if the taxpayer has made a qualified withdrawal from the bond.

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