Hey everyone, I need some help filling out the 1099-DIV in TurboTax. I had holdings in Vanguard funds: VUSXX (treasury market), VCTXX (California municipal), and the usual VMFXX (federal money market).
All the VUSXX and VMFXX is nonqualified dividend. The VCTXX has some tax-exempt dividend and tax-exempt dividend AMT. All interest was dividend, as the 1099-INT was all zeroes. The 1099-DIV had a mix of Total ordinary dividends, Qualified dividends, Section 199A dividends, Exempt-interest dividends, and Specified private activity bond interest dividends (AMT).
There is a page in Vanguard 1099-IDV that lists the fund and percentage of income that comes from treasuries or state.
`VUSXX: U.S. Treasury 80.06%`
`VCTXX: California 100.00%`
`VMFXX: U.S. Treasury 17.10%, Fed Home Loan 31.39%, Fed Farm Credit 0.88%`.
I had TurboTax pull the 1099-DIV directly from Vanguard and reviewed to make sure numbers are okay. On a subsequent page, it asks "Do these uncommon situations apply?" Should I mark "A portion of these dividends is U.S. Government interest."?
I will probably have further questions later about how to make sure the California municipal fund tax exemption is correct. But I need to get past this screen first!
Thank you.
You’re on the right track. Answer the questions for each fund.
Yes, it appears the VMFXX fund reported government-sourced income, so you would check the box for Government interest.
VMFXX only has 17% in Treasuries which would be state exempt. In some states like California more than 50% of the dividends have to be state exempt in order to claim any of the distributions exempt from tax.
Thanks for the reminder. So only 80% of the VUSXX dividends would be exempt from state taxes, then, correct?
And for VCTXX, 100% of it would be exempt from federal taxes.
I'm in CA and have Vanguard funds too. I manually enter mine so I don't know if the import picks up all the right amounts for US Govt Obligations. Years ago I had to make a spreadsheet to calculate the amounts each year. The Treasury fund for 80.06% is the only one of mine that now has over 50% in CA. You have to multiply the Dividends by 80.06% to get the amount to exclude.
Vanguard used to include the extra sheets with the 1099 statement but now you have to get them online to see which funds you can exclude and how much. I go though and circle all my funds. Tax information for Vanguard Funds
https://investor.vanguard.com/investor-resources-education/taxes/funds-tax-information
You probably need at least 2 of them….
US government obligations income information
Tax-exempt interest dividends by state
Thanks. This information was included with my 1099 packet from Vanguard, so that was convenient. I had VUSXX fund, which only has the US treasury at 80%. And then the California Municipal Fund is 100% California, so in that case I don't think I have to worry about other states. I tested the import (the direct import from Vanguard), but TurboTax is not able to calculate the portion that is exempt/etc on its own as of this time.
According to
https://investor.vanguard.com/content/dam/retail/publicsite/en/documents/taxes/USGO_012025.pdf
Seems VUSXX has 100% from US gov