If you’re interested in investing in tax-free municipal bonds, you may wonder if there are any tax consequences. In general, interest received on tax-free municipal bonds isn’t included in gross income for federal (and possible state) tax purposes. However, it may be included for alternative minimum tax purposes. Keep in mind that a municipal bond may pay a lower interest rate than an otherwise equivalent taxable investment. The after-tax yield is what counts. In addition, if you receive Social Security benefits, municipal bond investing could increase the tax you must pay with respect to the benefits. Contact us if you have questions about how the tax rules apply to your situation. https://bit.ly/2NMIz4g
