Q. Is the Victory Tax Exempt Intermediate (symbol - USATX) taxable in New York?
A. Simple answer: Yes.
USATX is a multistate tax exempt fund. The dividends are exempt from federal tax. Only the portion of the dividends attributable to the fund's investments in NY bonds is exempt from NY state tax. Victory can provide you a breakdown, by state, list. The don't send it automatically. You have to ask for it or find it on their web site. NY was 5.71% for 2024.* In addition, the percentage attributable to US territories is also not taxable by your state. So, in total, only 6.15% (of the box 12 amount on form1099-DIV) was not taxable by NY in 2024. So most of the box 12 amount ( about 94%) is taxable by NY.
The TurboTax interview can handle entering of this breakdown so that the taxable amount gets adjusted on your NY return. For details on how to enter, see: https://ttlc.intuit.com/community/state-taxes/discussion/re-exempt-interest-dividends-are-entered-fr... Most particularly, see the screen shot at that link.
Some people take the attitude that only 6% of the box 12 amount being tax exempt isn't worth the bother of all that.
*Google " victory capital state breakdown 2025", in January or possibly later this year.
https://www.vcm.com/assets/resources-mutualfunddoc/2024-Victory-Portfolios-III-State-Tax-Information...
