Glossary
interest — the charge for the use of borrowed money.
interest income — the income a person receives from certain bank accounts or from lending money to someone else.
taxable interest income — interest income that is subject to income tax. All interest income is taxable unless specifically excluded.
tax-exempt interest income — interest income that is not subject to income tax. Tax-exempt interest income is earned from bonds issued by states, cities, or counties and the District of Columbia.
