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Get your taxes done using TurboTax
Yes, there can be tax-free money market funds that are invested primarily in muni bonds or debt issued by other entities whose interest payments are exempt from federal income taxes.
It depends on which fund you chose to park your money. You can look at the 1099-INT form to see how much you earned and which box it is reported. If the interest income is reported in box 1, it is taxed as ordinary income.
@ron6612
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March 24, 2022
8:17 PM