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.
Mississippi is tax-friendly when it comes to retirees. In addition to low tax rates in general, retirees living in Mississippi do not have to pay any state income tax on qualified retirement income. They also gain an additional bonus exemption on property taxes upon reaching the age of 65. Mississippi residents benefit from the lowest per capita tax burden in the nation.