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Exempt-interest dividends are not subject to federal income tax however they may be subject to state income tax or the Alternative Minimum Tax (AMT). The exempt dividend income must be reported on your tax return.
Please follow the directions below to enter the information from box 11 of form 1099-Div.
Hi.
I also have information on Box 11, which then triggers the question in the next screen if "A portion of these dividends is U.S. Government interest". Should I flag that as YES?
Looking at my detailed statement, I found two securities identified as Tax-Exempt:
* SPDR SER TR NUVEEN BRC MUN IC <<< followed by a % for every single US state
* VANGUARD MUN BD FDS TAX EXEM PT BD <<< followed by a % for every single US state
If you click A portion of these dividends is US Government interest you will enter the US Government interest at the next screen.
At the screen Tell us more about your exempt-interest dividends, you may be able to click Multiple States in the drop down boxes if you have multiple states to report.
States vary widely on taxing exempt-interest dividends.
The question is not about states paying interest. It is about the US govt paying interest. Tabulation I rec'd from Vanguard does not show a Muni Bond fund receiving US govt interest. Don't know about the Nuveen fund.
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