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Chaz31
New Member

If one lives in a state with no state income tax, the checkbox "A portion of these dividends is U.S. Government interest" doesn't matter, right?

And would be best, even if checking box is warranted, to not check it?
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1 Reply

If one lives in a state with no state income tax, the checkbox "A portion of these dividends is U.S. Government interest" doesn't matter, right?

Correct.  You don't need to bother.

 

It only makes a difference on a state tax return.

 

And even if one lives in a state with an income tax, if the $$ amount is small, it may not be worth the effort to calculate the US Govt $$ amount. 

Example: if it's only $20, and in a 5% state...you save yourself a whole $1 in state taxes.

 

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

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