Which of the following is not true of U.S.Series EE bonds?
A)The rate on new issues is set relative to the rates on other Treasury loans.
B)Taxes on on interest can be deferred until the bond is redeemed.
C)The interest income is taxed by states and local governments.
D)Some interest is forfeited if the bonds are redeemed before five years.

Question

Quizplus · Accepted Answer

Interest income from U.S. Series EE bonds is subject to federal income tax, but is exempt from state and local income tax.

Which of the Following Is Not True of U