How Does Tax Relief Work

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B) Interest earned, although not paid, throughout a bond year, must be accrued after the bond year and reported as taxable income for that calendar year in which the bond year ends.

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In 2003 the JGTRRA, or Jobs and Growth Tax Relief Reconciliation Act, was passed, expanding the 10% tax bracket and accelerating some in the changes passed in the 2001 EGTRRA.