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.
But depending on where you live, you might lose more of your hard-earned money to income taxes at the state level. In fact, there are seven U.S. states without personal income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. But just because your state charges zero income tax doesn't automatically make it an affordable place to live.