Owners of bonds that were issued by the federal government are not required to pay federal income tax on the interest income.

Name: Owners of bonds that were issued by the federal government are not required to pay federal income tax on the interest income.
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Interest income from bonds issued by the federal government, such as U.S. Treasury bonds, is subject to federal income tax, but it is often exempt from state and local income taxes.

Owners of Bonds That Were Issued by the Federal Government