How do I adjust my 1099 DIV income to reflect a portion of a mutual fund that is exempt in California? Target date fund had CA tax-exempt holdings that need to be exclud
031013
3 Replies
VolvoGirl
Level 15
Feb 10, 2024 12:22:20 PM
What box is it in? And what company? Is it Vanguard? I have Vanguard and know them.
SteamTrain
Level 15
Feb 10, 2024 2:00:44 PM
And...what was the exact name of the fund the $$ came from.
Some Bond funds did not hold enough CA-specific bonds to allow the exemption. CA restricts the ability to exempt the $$ to those bond fund that hold mostly CA-Specific bonds.
Hal_Al
Level 15
Feb 10, 2024 4:26:33 PM
California, and Minnesota require that the bond fund hold at least 50% of their holdings be in their own state's bonds, before you can break out that state's $$ for possible lower state taxation. Illinois, essentially, doesn't allow it at all.