(It should go on Schedule M, Line 22. 75% 6. Prior to 2003, taxable dividend income was subject to federal tax at the same rates as ordinary income. For IRA portfolios, the improvement is even larger, with carbon intensity decreasing by over 50% on average. 7% versus a combined marginal state and federal short-term tax rate of 42. Watch this video to understand which forms you need to file: Understanding the tax forms. 93%. 202 3 This material is provided for educational purposes only and does not constitute investment advice. The percentages of income earned by the funds from each state or U. For the state-specific funds, income dividends will generally be substantially exempt from federal and local income taxes for a resident of that state. 4% (24% federal + 6. 14 Nevada 1. Does anyone know where I can find which state it is for the except tax? On form 1099-DIV? No, your box 12 amount is dividends from investments that are exempt from federal tax. 8787. 13%) We would like to show you a description here but the site won’t allow us. the portion of federally tax-exempt dividends derived from interest, on a state-by-state basis. Most states that have an income tax do not tax withdrawals used to pay qualified higher education expenses. When you get to the question, Choose the state where your tax-exempt dividends came from, you should choose More than one state, which is at the bottom of the drop down. For example, some states only exempt dividends for those funds holding a minimum percentage, usually 50%, of governmentTo determine the portion of dividends that may be exempt from state income tax or investment tax, multiply the 'Total Ordinary Dividends' amount for each applicable fund reported in Box 1a of Form 1099-DIV by the percentage listed in the table. Enter the amount of exempt-interest dividends in the applicable box on the DIV screen. This value represents dividends received from ETFs like MUB, which hold a. TurboTax Live Premium. TurboTax Live Full Service Business Taxes. g. The types of entities, which are exempt from paying dividends tax, include the following: Public Benefit Organizations (i. 25% versus 5. 00% APY on your uninvested cash, get a portfolio of higher-yield bond ETFs, and diversify for the long term with automated investing. 91 Nebraska 0. Foreign country or U. 3. 13% pre-tax). Does anyone know where I can find which state it is for the except tax? On form 1099-DIV?No, your box 12 amount is dividends from investments that are exempt from federal tax. Client acknowledges that the Wealthfront Advisers and Wealthfront Brokerage are subject to certain anti-money laundering (“AML”) and related provisions under applicable laws, rules, and regulations and areWithdrawals are also tax-free. Corporations which receive tax-exempt. I'll go ahead and link that below for those who may be unaware. Mark your calendar. Tax-Exempt Income 2 - 3 State by State Information and Alternative Minimum Tax Information 4 - 5 Section 2 - Information for Equity ETFs Qualified Dividend Income for Individuals 6 - 7 Dividends Received Deduction for Corporations 8 - 9 10 10. 13%)Only one fund issued the tax-exempt $$, and they say the 2% of the tax-exempt $$ came from NC bonds. “If the mutual fund has at least 50% of its assets invested in tax-exempt U. This white paper summarizes the motivation, design, and execution of Wealthfront’s US Direct Indexing service. On the interest or dividend line on Sch B worksheet, double click to get the Additional lnfo W/s. Specified private activity bond interest dividends $ 14. It is tedious. 30% = $93. for 2017, anyway. Capital Group Municipal Income ETF. 8. 5 million in potential tax savings for Wealthfront clients last year. TurboTax Live tax expert products. government securities Portion of total ordinary dividends that may be state tax–exempt $1,000 X 2. 25; %, which is on par with competitor Betterment’s 0. Exempt-Interest Dividend: A distribution from a mutual fund that is not subject to income tax. Free Military tax filing discount. During normal market conditions, at least 80% of the Fund’s net assets will consist of tax-exempt securities. TurboTax Live Full Service Premium. You can find the state on more detailed info sent from your financial provider. There's no way to turn this off, unfortunately. Other distributions and charges 17 . that may be state tax–exempt . Information for state tax reporting . The majority of states have a homestead property tax exemption that allows you to protect a certain amount of the value of your primary property from taxes. Virginia Tax-Free Bond. 16 . the TIAA‑CREF 5‑15 Year Laddered Tax‑Exempt Bond Fund. For example if you had $100 in. Deluxe to maximize tax deductions. Important Alternative Minimum Tax Information: The percentage of your total 2022 exempt-interest dividends subject to the Alternative Minimum Tax (“AMT”) is shown on the line “Amount Subject to AMT” at the bottom of the “Tax-Exempt Income by. ” ( 2021 Schedule CA Instructions ). Any dividends from a nonprofit organization or other tax-exempt corporation; Dividends paid by a corporation on securities that an employee holds in an employee stock ownership plan maintained by. g. S. Only certain taxpayers are eligible. State tax withheld $ $ Form . I found directions to the file at Betterment's site following a google search, btw. Series 480. This form will also report any interest paid out in your cash account. box 11, shows exempt-interest dividends from a. g. Va. The 2019 Form 1099-DIV reports Noncash liquidation distributions in Box 10 and Exempt interest in Box 11. This box captures the exempt-interest dividends subject to the alternative minimum tax for the amount entered in box 12. To determine this amount for each of your funds, multiply the "% of dividends from U. In this example, $93. Federal Income Tax Withheld- Box 4 shows backup withholding. g. Skylar Clarine. Betterment invests in a variety of state municipal bonds. 75% = $87. However, the dividends from the treasury fund (VUSXX) is tax exempt at the state level, and the dividends from my municipal funds (VCADX) is tax exempt at levels of federal and state. This past year Wealthfront lowered the minimum account balance required to take advantage of Stock-level Tax-Loss Harvesting to $100,000. Noncash liquidation distributions $ 11 . This amount is included in box 11. Email us. You can apply your harvested short-term losses to offset short-term gains; reduce your taxable ordinary income by up to $3,000 per year; carry forward your tax loss to future tax years; or offset long. So, let’s look at the 2023 tax brackets for single and joint filers of qualified dividends. interest on the next screen. For single filers, you pay a 0% capital gains rate for up to $44,625. obligation dividends and resident state municipal bond dividends (regular and private activity) are used to compute total tax-exempt income and tax-exempt interest. 2% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. In other words, these dividends, when so entered into TurboTax and thus onto your actual tax return, are federal tax-exempt income. . From a tax perspective, 2015 was an unprecedented year of tax savings for Wealthfront clients who took advantage of our Daily Tax-Loss Harvesting and Stock-level Tax-Loss Harvesting services. All of the income from those bonds, other than than those issued within your home state, are taxable by your home state. Municipal bonds are issued by state and local governments, not the US government. Community: Discussions: Taxes: Deductions & credits: My 1099-DIV auto imported from Wealthfront. • Box 16 State tax withheld Do your taxes online! AB shareho. For example if you had $100 in exempt-interest dividends and your sheet says 10% exempt in your state, enter $10 (10% x $100). The amount of tax. , taxable or nontaxable) or holding period. Information for state tax reporting This information may help you prepare your state income tax return. For the primary instrument for Dividend Stocks, Wealthfront used the Dow Jones US Dividend 100 Index (prior to April 27, 2006), and VIG thereafter. 01% 5. Thrivent Municipal Bond Fund information by state for 2022. obligations. For example if you had $100 in exempt-interest dividends and your sheet says 10% exempt in your state, enter $10 (10% x $100). 00% Arizona 0. Highlight April 18, 2023 on your calendar before you do anything else. Until then, the tax rate on dividend and interest income in New Hampshire declines every year until it reaches zero. In most cases, that would be mutual funds composed of municipal bond investments. total ordinary dividends . territories are listed in alphabetical order. 5%, you get an estimated $562. If shareholders received a taxable capital gain distribution, that information is also reported on Form 1099-DIV. TurboTax Live Deluxe Full Service. TurboTax Live Full Service Business Taxes. However, they may also pay them as stock of another corporation or as any other property. The tax-exempt interest dividends are 100% exempt from federal income tax. S. S. TurboTax Live Deluxe Full Service. Edit: VUSXX is no longer 100% state tax free. The effectiveness of the Tax-Loss Harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront Advisers and type of investments (e. No. I found directions to the file at Betterment's site following a google search, btw. Once it is passed through another entity like a mutual fund, it is only exempt from state tax if the state deems it exempt. All Wealthfront taxable accounts (individual, joint or trust) are eligible for Daily Tax-Loss Harvesting. 63 Arizona 1. S. , taxable or nontaxable) or holding period. Taxpayers will often receive a Form 1099-DIV for all dividends in excess of $10 or more earned from any single entity. of the tax-exempt dividends in your state. . Exempt-interest dividends are usually interest payments on state or municipal bonds. This low-cost portfolio is hand-picked by our research team, and is diversified and optimized for the long term. I'll go ahead and link that below for those who may be unaware. The amount of municipal bond interest from your state, Puerto Rico, the Virgin Islands, and Guam can be calculated by multiplying the total interest dividend you received from a fund (reported as tax-exempt interest on Form 1099-DIV) by the appropriate percentage of interest received from your state, Puerto Rico, the Virgin Islands, and Guam. 43%. Municipal bonds, which are bonds issued by state and local governments, are typically exempt from federal income tax. • Box 13 Specified private activity bond interest dividends • Box 14 State • Box 15 State identification no. TurboTax Live Basic Full Service. Any information on this matter can be found by utilizing our mutual fund tax information page on Fidelity. 7% (per our whitepaper). For Indiana residents, 15% of the dividends from the Thrivent Municipal Bond Fund are considered tax-exempt for state tax purposes. Interest from non-California State or Municipal bonds; The California tax-exempt interest dividends you received from mutual funds is less than the federal tax-exempt interest dividends; You elected to report your child's interest and dividends; IRAs, pensions, or annuities. government securities Portion of total ordinary dividends that may be state tax–exempt . Please consult a tax advisor to determine whether your state allows a tax exemption for that portion of exempt-interest dividends attributable to your state. 1099-INT for non-Colorado tax-exempt interest (taxable on the Colorado return) The need to split 1099s for the accrued interest issue is documented and has been that way for years. Burton G. 54% Limited Term Tax-Exempt 2. However, outside of Nevada, you may get a better state-sponsored 529 if your state offers one, as it may offer tax deductions or credits. 7% for a married couple who jointly earn an annual income of $260,000 (the average Wealthfront married couple client) and live in Pennsylvania. Although state tax laws differ, many states do not tax interest on the bonds they issue or on interest from municipal bonds issued within the same state. It also assumes a combined federal and state marginal tax rate of 20. To determine the portion of dividends that may be exempt from your state income tax, multiply the amount of “ordinary dividends” reported in Box 1a of Form 1099-DIV by the percentage listed in the following table. Consistent with Utah law, these factors. Percent Percent Subject Tax- Subject to to Federal Exempt Alternative Fund Income Tax Percentage Minimum Tax California Municipal Bond Fund (EVM) 3. 62 Nebraska 0. Less withholding also means a bigger . It would be the state that your fund invested in to get the tax exempt dividends. FATCA filing requirement. An exempt-interest dividend can be beneficial to high-income individuals to minimize their tax burdens. So, to be clear, when I click the box "A portion of these dividends is U. 9 — an average decrease of over 30%. Federal Tax-Exempt Dividend Distribution (from 2021 Tax Reporting Statement) Utah Exempt Percentage of Income (from table) Portion of Dividend Distribution that May Be Exempt from Utah Income Tax $1,000 X 19. $1,000 . Also, if you acquired a tax-exempt OID bond at an acquisition premium, only report the net amount of tax-exempt OID on line 2a of your Form 1040 or 1040-SR (that is, the excess of the tax-exempt OID for the year over the amortized acquisition premium for the year). Xtrackers ETFs cannot be held responsible for any direct or incidental loss resulting from applying any. The qualified dividend tax rate increases to 15% for taxable income above. California, Connecticut, and New Yorkvidendexempt di income only when a fund has mte a certain. Check I earned tax-exempt dividends in more than one state. g. 72% 5. Here's a direct shot to the XLS file for 2017. 2023. , taxable or nontaxable) or holding. We are required to report to you and the Internal Revenue Service all tax‑exempt dividend income on Form 1099‑DIV. Portion of total ordinary dividends that may be state tax–exempt . 11% 96. The effectiveness of the Tax-Loss Harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront Advisers and type of investments (e. Government interest portion of a fund dividend income is exempt from state and local income taxes. (Tax-Exempt Income Earned by State)* Alabama 0. If you multiply that $1. In the risk score 8 portfolio (one of our most commonly-chosen. If you have more than one state, you need the second Dividend entry worksheet. So, for example, if a trust earns $10,000 in income during 2023, it would pay the following. If you are importing a 1099-DIV and Box 11 (Exempt Interest Dividends) is not $0, TurboTax will show you a screen which asks: “Choose the state where your tax-exempt dividends came from. Government obligations is generally exempt from state and local income taxes. 3% California State income tax rate. e if the fund invested in California municipal bonds and you are a resident of California, then those dividends would be tax exempt on your state return). TurboTax Live Full Service Business Taxes. In Box 14, enter the state abbreviation, in Box 15 enter the payer’s state ID number. The effectiveness of the Tax-Loss Harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront Advisers and type of investments (e. They will typically tell you in percentages, like California 12. However, as Germany has a tax treaty with the US, this tax rate can be reduced to 15% if the student properly completes their W-8BEN form. However, due to legislation, the tax on dividends and interest is being phased out. Current Tax Rate is the combined federal + state tax rate applicable to the. That line reads, "Income (interest dividends or gains) received while a. S. Rowe Price tax-free fund investments. Currently closer to 75% (3/2023). 529 college savings account fees: If you opt for Wealthfront’s 529 plan, fees range. Please consult your tax advisor to determine whether you are eligible for state tax exemption for this portion of your fund’s income. only the portion of fund income dividends earned from the shareholder’s state of residence (and from U. 8%. Optimized for tax savings For taxable accounts, our Tax-Loss Harvesting strategy finds ways to help save on taxes and maximize your returns. Fund Objective. $10,551 – $14,450: 35%. ”Which tax documents should I be expecting? You should expect the following: For any taxable investment accounts with dividends or realized gains/losses, we’ll post a Consolidated 1099. The tax benefit you would get would be that your home state would not tax the dividends that come from your state, if there even are any (i. Individual taxpayers can exclude 100% of their federally tax-exempt income dividends related to fund shares acquired prior to January 1, 2012. Minnesota Residents: 100% of your federal tax-exempt dividends for this fund are subject to Minnesota Income Tax. 34% 5. Here are the after tax rates for the Treasury MM funds mentioned above. Federally tax-exempt income dividends Calculate how much of a fund’s federally tax-exempt income dividends can be excluded from your state taxable income. You’ll need the amount reported to you in Box 13 of Form. Interest from Treasury bonds is typically exempt from state income tax, so we include more of them for clients in higher state tax brackets. 4. In all likelihood, the dividends truly are from more than one state, so you are going to want to select "More than One State" - see screenshot below. Maybe in the future they'll add recurring withdrawals. The tax-exempt interest dividends are 100% exempt from federal income tax. 3. The percentage for direct US government obligation. 49%, or 5. Tax-Loss Harvesting. If any federal tax was withheld in box 4, enter this amount here. For 2023, qualified dividends may be taxed at 0% if your taxable income falls below: $44,625 for those filing single or married filing separately, $59,750 for head of household filers, or. interest dividends that may be exempt from state income tax. 78% Alaska 0. Follow. TurboTax Live Basic Full Service. Based on a client’s tax situation, our goal is to recommend an optimal allocation for them that maximizes after-tax earnings. This past year Wealthfront lowered the minimum account balance required to take advantage of Stock-level Tax-Loss Harvesting to $100,000. TurboTax Live Premium. 019. S. Generally, the U. If less than 95% of the federally tax-exempt interest dividend from a. Note: At. Ordinary dividends are taxed at the. S. ” At the State prompt, select “Multiple States” at the very bottom of the drop-down menu and uncheck the box for “I earned tax-exempt dividends in more than one state. 11. In most states, fund dividends from interest on direct U. mutual fund or other RIC paid to you during the. Alternatives include non penalty CDs and T-Bills (especially 4 month). State and local tax treatment. Limited Term Tax-Exempt Bond Fund of America®. You can select More than one state and continue if you: - Live in a state with no income tax (AK, FL, NV, SD, WA, WY) -. This is the date by which you must either file your tax return or Form 4868 to get a tax extension. 12 . None of the Funds listed below met these requirements for calendar year 2021. In this example, it shows that the national tax-exempt fund has the highest after-tax yield, although not by much over the Treasury money market fund (3. ” ★ How do I address “Foreign tax paid” and "Foreign income" in my tax return or tax software? ★ How do I address “exempt-interest dividends” in my tax return or tax software? ★ Cost basis and sale proceeds amount on Form 1099 For the state-specific funds, income dividends will generally be substantially exempt from federal and local income taxes for a resident of that state. In this example, $29. On the following pages, you will notice funds marked with an asterisk (*). The Bloomberg Municipal Managed Money 1-25 Years Index is designed to track the U. g. 2022 VanEck Supplemental Tax Guide Page # Section 1 - Information for Municipal Income ETFs Taxable vs. Wealthfront generates and automatically reinvests dividends, and uses that positive cash flow to rebalance. The amount in Box 11, which is excluded from Box 1a, is made up of Muni's (meaning local and state bonds) and thus should not be included when completing the "Enter U. , taxable or nontaxable) or holding. Minnesota Residents: 100% of your federal tax-exempt dividends for this fund are subject to Minnesota Income Tax. In this section you will find information for the Western Asset multi-state funds that have paid income dividends which are tax- exempt for regular Federal income tax purposes. Thus,. Not only will we handle all the trades for you, but we’ll automatically reinvest your dividends, rebalance your portfolio, and look for regular Tax-Loss Harvesting opportunities, whenever possible. 2(422) provides a list of federal obligations exempt from state tax that appears similar to the list above under Explanation of Selected Items. On the following pages, you will notice funds marked with an asterisk (*). If Wealthfront is monitoring multiple accounts to avoid the wash sale disallowance rule, the first taxable account to trade a security will block the other account (s) from trading in that same security for 30 days. Series 480. Note: Tax rates include both federal and state tax rates and are based on the typical tax bracket of Wealthfront clients. CONTINUED-2-National Limited National High Yield AMT-Free Maturity Municipal State / Municipal Municipal Municipal Municipal Opportunities Territory Income Fund Income Fund Income Fund Income Fund Fund New Jersey 5. Employees that want to claim exempt from Minnesota income tax must use the following form: Form W-4MN, Minnesota Withholding Allowance/Exemption Certificate. For shares acquired on or after January 1, 2012, only dividends from Indiana sources and dividends from U. ) Box 13: Specified Private Activity Bond Interest Dividends If you are subject to the alternative minimum tax (AMT),During 2022, I invested in SGOV, an ETF which holds 0-3 month Treasuries. . Wealthfront's FAQ appears geared towards Turbo Tax users. S. US Direct Indexing is available for taxable accounts of at least $100,000, and once your account balance reaches. These funds did not meet the. A client may request spousal monitoring online or by calling Wealthfront at 844-995-8437. For example, some states only exempt dividends for those funds holding a minimum percentage, usually 50%, of government securities at the end of each quarter. Territories and U. We charge a small, 0. g. Washington's estate tax exemption is. If 95% or greater of federally tax-exempt dividends are from a mutual fund and are bonds issued in Minnesota, include the portion of the dividend only generated by non-Minnesota bonds. For Indiana residents, 15% of the dividends from the Thrivent Municipal Bond Fund are considered tax-exempt for state tax purposes. 3. 10763-65. Maryland Capital gains derived from Maryland obligations are exempt from state tax. However, dividends that represent payments from otherwise federally tax-exempt entities (but from those outside of the state of New. Federal Income Tax Withheld- Box 4 shows backup withholding. Our tax-advantaged accounts. Residents from the state of Nevada are only charged the broker’s advisory fee on amounts over $25,000, making the Wealthfront 529 the lowest cost advisor-sold 529 plan. Highlight April 15 on your calendar before you do anything else. Cash liquidation distributions $ 10 . If you are importing a 1099-DIV and Box 11 (Exempt Interest Dividends) is not $0, TurboTax will show you a screen which asks: “Choose the state where your tax-exempt dividends came from. That year, you paid $80 in investment interest expenses and had investment income of $160. TAX-EXEMPT FUNDS % AMT Arizona Tax-Exempt 1. $89,250 for married filing jointly or qualifying widow (er) filing status. box 11, shows exempt-interest dividends from a. Please consult your tax advisor regarding these requirements. Since our funds are national, you may need to select “More Than One State” when you file your taxes. 97% High Yield Municipal 13. TurboTax en español. This amount is included in box 11. Federally Tax-Exempt Dividends from Mutual Funds Investing in Bonds of Another State. If you received a Form 1099‑DIV, your tax‑exempt dividends will appear in Box on the form and the. It seems clear, however, that qualified dividends are indeed a subset of ordinary dividends (“Qualified dividends are the ordinary dividends that are subject to the same 5% or 15% maximum tax rate that applies to net capital gains” (IRS Publication 550 (for 2004 Returns), p. State % State % State % State % State % State %. All Wealthfront clients with Automated Investing Account balances between $100,000 and $475,000 can choose to use Wealthfront’s US Direct Indexing service, which seeks to enhance clients’ after-tax returns (clients with taxable accounts. ago. The fraction of distributions subject to qualified dividend treatment is estimated based on historical data. Otherwise Vanguard is still very good after tax rates even at the very highest state tax rates. After importing your data, you may be prompted by TurboTax to “Tell Us More About Your Exempt Dividends. interest dividends that may be exempt from state income tax. 62 Oklahoma 0. FreeTaxUSA and Wealthfront: State Tax-Exempt Dividends. ”. 48% New Mexico 0. 6A reports any taxable dividends and/or gross proceeds from realized capital gains or losses in your taxable investment account. This strategy takes a quality-oriented approach to tax-exempt investing, with a focus on investment-grade securities. In addition, the amount listed as "Exempt interest" in Box 11 of Form 1099-DIV would not be from U. I’ll detail the changes below, but I also. See Footnotes after Section 5. For 2019, the long-term capital gains tax rates are 0%, 15%, and 20% for most taxpayers. Tax forms included with TurboTax. If Wealthfront is monitoring multiple accounts to avoid the wash sale disallowance rule, the first taxable account to trade a security will block the other account (s) from trading in that same security for 30 days. The amount in this box reduces your federal tax liability and should be claimed on IRS Form 1040. The Tax-Exempt Bond Fund of America did not pay any federally tax-exempt income dividends derived from municipal bond interest subject to AMT. tax-exempt interest dividends by state for 2022 Generally, interest income from coupon or "original issue discount" on a qualified municipal obligation is tax-free for federal income tax purposes. 00% Alaska 0. Generally, the U. However, if, for some reason, your investment didn’t perform as well as expected and you had only $20 of capital gains investment income, you could only deduct $20 of. the rest, but is also very good rates though. 37% 6. Burton G. At a current 6. ” The effectiveness of the Tax-Loss Harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront Advisers and type of investments (e. Your tax documents can be found on the Documents page, which is accessed from the top menu of your account. There are seven federal income tax brackets, ranging from 10% to 37%. TurboTax will ask you about any dividends that are exempt from interest. Although the income dividends paid by RVNU are derived from tax-exempt interest income that is generally exempt from U. The information contained herein is based on current tax laws, which may . However, we hope that it will help you better organize and understand the portion of your income tax return that involves your Invesco closed-end investments. REMIC additional information 17 . Form 1099-DIV, box 12, shows exempt-interest dividends subject to the. Such federal tax-exempt dividends are not always tax-exempt for state. Box 14-16 are used to report state information. territorial obligations) may be exempt from state income tax. 25% annual management fee for the Automated Bond Portfolio, just like with our Automated Investing Account. 3%, New York 8. State identification no. Pennsylvania is also the largest state that offers a tax deduction for contributions to any 529 plan. After importing your data, you may be prompted by TurboTax to “Tell Us More About Your Exempt Dividends. 00% California 0. Percent Percent Subject Tax- Subject to to Federal Exempt Alternative Fund Income Tax Percentage Minimum Tax California Municipal Bond Fund (EVM) 5. Fidelity reports to the IRS and applicable shareholders on Form 1099-DIV exempt-interest dividends distributed from mutual funds. This question is asking how much of your taxable dividend income is from US government interest. Box 12: Exempt-Interest Dividends Represents the amount of tax-exempt dividends paid to you by a mutual fund during the calendar year. Likewise, federal bonds issued by the government are usually tax-exempt at the state and local levels. 4% annual rate of return and the taxable investment account has an 8. , taxable or nontaxable) or holding. CONTINUED-2-National Limited National High Yield AMT-Free Maturity Municipal State / Municipal Municipal Municipal Municipal Opportunities Territory Income Fund Income Fund Income Fund Income Fund Fund New Jersey 5.