In the Case of Interest Income from State and Federal

question 105

Multiple Choice

In the case of interest income from state and Federal bonds:

• A) Interest on United States government bonds received by a state resident cannot be subject to that state's income tax.
• B) Interest on United States government bonds is subject to Federal income tax.
• C) Interest on bonds issued by State A received by a resident of State B can be subject to income tax in State B.
• D) All of the above are correct.
• E) None of the above are correct.