If you receive a Form 1099-INT for interest income on deposits that were frozen at the end of 2014, see Frozen deposits under How To Report Interest Income in chapter 1 of Publication 550, for information about reporting this interest income exclusion on your tax return.
What are the most income tax-friendly states for retirees? That would be the seven states â Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming â that donât tax personal income; and the two states â New Hampshire and Tennessee â that collect income tax only on interest and dividend income.
His message to them: âYou can stop trying to figure out how to pay the state income tax, because we donât have one.â. Most states finance local and state government largely through some mixture of sales taxes, property taxes and income taxes. Texas is one of nine states that do not levy an individual income tax. The Tax Foundation, a conservative-leaning research group, ranks Texas ninth-best on its State Business Tax Climate Index, largely because of the stateâs lack of an income tax. On three of the foundationâs other major rankings â property taxes, sales taxes and corporate taxes â Texas ranks in the bottom 20 states.