Which of the following types of interest income are taxable for Federal income tax purposes?

Question

Quizplus · Accepted Answer

Interest on life insurance proceeds that the beneficiary elected to receive in installments over a period, such as 10 years, is taxable. This is because the interest component of the installment payments is considered taxable income by the IRS. Interest from municipal bonds, like those from New York City or the State of Michigan, is generally exempt from federal income taxes.

Which of the Following Types of Interest Income Are Taxable