If you receive a Form 1099-INT for interest income on deposits that were frozen at the end of 2014, see Frozen deposits under How To Report Interest Income in chapter 1 of Publication 550, for information about reporting this interest income exclusion on your tax return.
What are the most income tax-friendly states for retirees? That would be the seven states â Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming â that donât tax personal income; and the two states â New Hampshire and Tennessee â that collect income tax only on interest and dividend income.
And while sunny Florida is popular among many retirees, it ranked near the bottom of the list -- in 39th place -- in part because of higher crime and living costs and lower quality healthcare. Meanwhile, California ranked 28th, weighed down by high state taxes and living costs. Related: Best places to retire. Here are the 10 states offering the best mix of affordability and lifestyle, according to Bankrate. 1. South Dakota: Yes, the temperatures dip below freezing (a lot), but South Dakota boasts low crime, quality healthcare and no state income tax.