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Muni bonds should be owned in your taxable brokerage accounts, and do not in your IRA or 401K accounts because income in those accounts has already been tax-deferred.

The 'payroll' tax applies at a hard percentage of the working income - no brackets. For employee, pay out 6.2% of one's working income for Social Security (only up to $106,800 income) and a single.45% of it for Medicare (no limit). Together they take one 7.65% of the income. There is no tax threshold (or tax free) level of income in this system.

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Tax evasion is often a crime. However, in such cases mentioned above, it's simply unfair to an ex-wife. It seems that in this particular case, evading paying a good ex-husband's due is only one fair amount. This ex-wife is not stepped on by this scheming ex-husband. A tax arrears relief is often a way for the aggrieved ex-wife to somehow evade from the neighborhood tax debt caused an ex-husband.

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