Give some examples of taxable and nontaxable interest.
General Rule: all interest is taxable. (Unless specifically excluded)
Taxable - Federal bonds, Industrial Development bonds, Corporate bonds, Premiums from opening savings account, Part of proceeds from installment sales, Interest paid on late payment of federal and state refunds.
Non-taxable - State and local government bonds, Bonds of a US possession, Series EE bonds (when used for education or taxpayer was over 24 years old when received).