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No, it is not taxable. You must report the income, but it will be exempted from taxable income. Box 7 code Q means it is a qualified distribution, which is not taxable to the IRS, and shouldn't be to the state, either (since no information is reported in box 14 which would report the state distribution amount).
No, it is not taxable. You must report the income, but it will be exempted from taxable income. Box 7 code Q means it is a qualified distribution, which is not taxable to the IRS, and shouldn't be to the state, either (since no information is reported in box 14 which would report the state distribution amount).
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