For tax exempt interest dividends, the mutual fund says that in North Carolina it is 0.68. Does it mean that I multiply exempt amount by 0.68 or 0.68% (0.0068)?

My tax exempt interest dividends is $300. If I have to multiply by 0.68 then I get 204$ as exempt in NC. Otherwise it doesn't seem right to only get exempt by $2.04? Looking for help.

posted

Connect with an expert

1 Best answer

Accepted Solutions

For tax exempt interest dividends, the mutual fund says that in North Carolina it is 0.68. Does it mean that I multiply exempt amount by 0.68 or 0.68% (0.0068)?

I can't really interpret that for you from the info you've given since different brokerages may report differently...BUT...look at their breakdown of all the other states?

1) IF they are using fractions/decimal amounts, none of the other states can exceed 1.0 , thus they would all have to be less than 1.0 too.

2) IF some of the other states have values higher than 1.0, then they are using % values and you would multiply by 0.0068 .

__________________________

And remember...since multiple funds can feed into the tax-exempt box, you need to multiply that 0.0068 against just what that particular fund issued. (unless, of course, if you only had one fund feeding that value.)

______________________

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

View solution in original post

2 Replies

For tax exempt interest dividends, the mutual fund says that in North Carolina it is 0.68. Does it mean that I multiply exempt amount by 0.68 or 0.68% (0.0068)?

I can't really interpret that for you from the info you've given since different brokerages may report differently...BUT...look at their breakdown of all the other states?

1) IF they are using fractions/decimal amounts, none of the other states can exceed 1.0 , thus they would all have to be less than 1.0 too.

2) IF some of the other states have values higher than 1.0, then they are using % values and you would multiply by 0.0068 .

__________________________

And remember...since multiple funds can feed into the tax-exempt box, you need to multiply that 0.0068 against just what that particular fund issued. (unless, of course, if you only had one fund feeding that value.)

______________________

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

For tax exempt interest dividends, the mutual fund says that in North Carolina it is 0.68. Does it mean that I multiply exempt amount by 0.68 or 0.68% (0.0068)?

Thank you. This is for the fund Vanguard Tax-Managed Balanced Fund. I do see that states like Florida has 5.27 and that for North Carolina it is 0.68.

Still have questions?