Hi @JohnB5677, Thanks for your response.
Context: I am talking about dividends from Mutual Funds (MF). I am trying to put a simple example to talk about the critical point. I have attempted to keep it very simple but still comprehensive. Please feel free to ask for clarifications.
Let us consider the following example. I have an MF with broker VGuard, and the MF has shares of companies A and B. Assume I moved from State 1 to State 2 on 1st September.
Important: I checked my 1099-DIV. It doesn't have information about when VGuard got the dividends from the companies. It only tells when it was issued to me. So, I don't think we can determine the date when the broker got it. But for the sake of understanding, let us consider the following example.
Let us say that company A sent the following dividends to VGuard: (This is not available in real 1099s)
- $100, on 1st March 2021 (Before Moving)
- $100, on 1st December 2021 (After Moving)
And company B sent the following dividends to VGuard: (This is not available in real 1099s)
- $100, on 1st January 2021 (Before Moving)
- $100, on 1st August 2021 (Before Moving)
VGuard consolidated these and sent them to me in the two slots as shown below: (This is the only information available in actual 1099s, and details about when the VGuard got it is not there.)
- Slot 1: $ 200 on 1st April (Before Moving) -- [ Note: This has dividend from Company A and Company B, which VGuard also got before I moved.]
- Slot 2: $ 200 on 10th December (After Moving) -- [Note: This has dividend from Company A, which VGuard got before I moved, and from Company B, which VGuard also got after I moved.]
Questions:
- Taxes from slot 1 DIV will clearly go to State 1.
- What about Slot 2? Will it completely go to State 2 or split between the two states? If split, then how to calculate that split. Remember that 1099 doesn't tell when the VGuard got these dividends (I have just mentioned them in my example to explain).
Thanks,
