Are dividends of US government interest the same as government money market dividends?

[xiaoxgu]

Are dividends of US government interest the same as government money market dividends?

[LindaS5247]

No, dividends from government money market funds are not exactly the same as direct U.S. government interest. They do often work somewhat similarly for tax purposes, and both are usually reported as "ordinary dividends."

With dividends from government money market finds, only the percentage of the dividend that comes from direct U.S. government obligations is generally exempt from state income tax.  You would have to look at your brokerage statement or ask your broker or financial advisor to find the percentage of dividends that qualify for this exemption. 

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[Bsch4477]

No. The dividends from U.S. securities are not taxed by the state governments but the money market interest can partly be taxed due to holdings of other than U.S. securities so some may be taxed by the state. Your fiduciary will give you documentation of what percent is due to U.S. securities.