Actually,. I have a fund I'll call ABCDE. Rounding numbers, ABCDE paid dividends of $500.00. ABCDE also had a capital gains distribution of $400.00. This $400.00 is not a part of the dividends. My understanding is that MD does not tax either the dividends or the capital gains that were from US obligations.
Since 5.4% of the fund is US obligations, my understanding is that I take 5.4% of the dividends of $500 as a subtraction on the MD tax form, and that I can also take 5.4% of the capital gains of $400.00 as a subtraction on the MD tax form. I was asked in turbotax about the dividends, but I was not asked separately about the capital gains.
So, I am not sure if my understanding is wrong or if I missed the place that I should be entering the capital gains information.
