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Report nontaxable income
Q
I’ve heard that you don’t have to report nontaxable income, but I’ve also heard the contrary – that you do need to report the income on your federal tax return, although it is not subject to taxation. Which is correct? Thanks – I’m a customer and I like your Web site.
A
James A. Klotz responds:
Tax-free income should be reported on line 8B on your 1040.Although this income is not taxable, it can affect certain computations such as the one required to determine the taxability of social security benefits.
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