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Printable Form Instructions 1040 (Schedule E) Allegheny Pennsylvania: What You Should Know
Treatment of Exempt Interest Income Exempt interest income is defined as any interest income received that was not included in the taxpayer's gross income nor taxed by the Internal Revenue Code as ordinary income for the taxable year, but, such interest income is not subjected to any tax imposed by Internal Revenue Code Section 7652, 7652-X. Accordingly, the excess is exempt interest income and may be excluded from gross income.
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