Fed Interest/Dividends from SNVXX Government Money Market Fund (Schwab)

[john747]

I have a 1099 DIV with $9101.37 in box 1a: Total Ordinary Dividends.  Of that amount $2143.54 came from SNVXX.  When I look up SNVXX, Schwab says at least 99.5% comes from US Government securities.  

After I enter the 1099 DIV in TTax, I am prompted with a series of check boxes.  One of them says: "A portion of these dividends is U.S. Government interest."  Since 99.5% or more of this fund is in government securities I checked the box.  I then entered $2,132.82, which is 99.5% of the total I received from SNVXX.

Did I handle this correctly?

[JohnB5677]

Yes If you own a mutual fund like SNVXX, you'll need to calculate the amount of income you earned from the fund's government bond holdings to take advantage of this exemption.

@john747

Edited 02/17/2025 \ 7:23 AM PST

[baldietax]

@john747 I think you handled this correctly

@JohnB5677 I don't think your response is correct.  Agree this is all ordinary dividend in Box 1a not qualified.  But a portion of it is government obligation as provided by the % supplied by the mutual fund company for that holding.  This is the case with most MM funds.

[john747]

Awesome.  Thanks guys and gals. 

[anuragpgupta]

https://www.schwabassetmanagement.com/resource/2024-supplementary-tax-information shows that only 33.3% of SNVXX is in US Gov Obligations, and only that portion would be generally exempt from state income taxes.

So I wonder how you got the 99.5%.

Also, for CA/CT/NY, see the remark at the top of that document about it not meeting the minimum investment requirements to permit the "pass-through" of exempt income. :(

[baldietax]

good catch yes the official source for the %s should be the tax supplement link you provided not deducing it from prospectuses or asset allocation web pages etc