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

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I was paid $78,064, which I am taxed on for Social Security and Healthcare. I put $6,645.72 (8.5% of salary) in 401k, making my federal income taxable earnings $64,744.

And a person really with the reasoning behind this tax, it is a fair tax. The trucking industry may comfortably provide the backbone of this American economy, but they take much toll regarding roads, and if it weren't for taxes like this there would be no money to keep our roads maintained, safe, and regarding congestion.

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