I have a mutual fund holding ~99% US treasuries and ~1% Fed Home Loan securities that paid dividends and a very small short-term capital gain from the fund's internal sales (not my sales). I have two questions on how to enter/adjust data to deduct the proper amount of Govt income for my state taxes:
1. Do I include both the US Treasury and the Fed Home Loan percentage listed on my broker's 1099 detail page in my calculation of Govt income exempt from state taxes?
2. Do I include only the "nonqualified dividend" income listed on my broker's supplemental information page, or do I also include the short-term capital gain listed with the dividends, in the calculation for state-tax exempt income? Both items are included on the broker's "Detail for Dividends and Distributions" for that fund.
Thank you.
