What is tax-exempt?
The Bankrate.com financial term of the day is: "tax-exempt."
Not all income is subject to income taxes; some of it is tax-exempt. You don't have to pay federal tax on earnings that are tax-exempt, including the interest on municipal bonds.
You'll typically owe the government at least a little something out of the money you make, except on income that's tax-exempt.
For help making sense of your taxes, visit the Taxes section at Bankrate.com.