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Massachusetts treatment of US government Money Market Fund Dividend

How is the dividend from a US government Money Market mutual fund treated in Massachusetts ? Some stated allow a deduction for the portion generated from US government issued instruments. How does Massachusetts treat such dividends ?

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Massachusetts treatment of US government Money Market Fund Dividend

MA exempts that US Bond interest,

 

When you enter the 1099-DIV (in the Federal Section) for that Brokerage or Mutual fund company, those US$$ will be included in box 1a along with all other dividends you received (But not from any individual US bonds you may own...those go on a 1099-INT).

 

As you Continue to the page after the Main 1099-DIV software form, you click on a box "A portion of these dividends is U.S. Government interest"

 

Then the next page allows you to indicate what sub-portion of box 1a was from US bonds....you have to calculate that exact amount from the supplemental data sheets that the brokerage or fund company provides...since, usually, not all of box 1a is all from US bonds..unless that is your sole holding  that issued any federally-taxable dividends of some kind (other mutual funds, or stocks in that same account).

 That entry will be transferred automatically to the MA software and be subtracted from MA income in the appropriate place.  

 

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

Massachusetts treatment of US government Money Market Fund Dividend

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