Reporting help with Vanguard 1099-DIV

[frostily0495]

I received a 1099-DIV from Vanguard for brokerage account where the only asset I hold is VTI ( Vanguard Total Stock Market Index Fund ETF). 

I am trying to report this in TurboTax Desktop Deluxe Version. My 1099-DIV has the following fields which have values.

1a- Total ordinary dividends (includes lines 1b, 5, 2e)

1b- Qualified dividends

5- Section 199A dividends

Then later in details it has:

Security description which has numbers associated with "Qualified dividend" "Section 199A dividend" and "Nonqualified dividend" on various dated. 

At end it has 

PERCENTAGE OF INCOME FROM US GOVERNMENT SECURITIES

Fed Source Total 0.30%

I file in all these details in TurboTax and then in later question sections I am confused about. It seems like some of these checkbox should be selected?

[MarilynG1]

Select the first box, then multiply the amount in Box 1 by .30 and enter that amount as US Government Interest.

@frostily0495 

[JohnnyMac16]

To clarify, you would multiple the amount in Box 1 by 0.30% (which is 0.003) to get the U.S. Government Interest.

[MarilynG1]

Multiply amount in Box 1 by .30 (which is 30%).  That means 30% of your dividend comes from US Government sources.  There may be a list of securities invested in by that particular fund with your 1099-DIV info.

@JohnnyMac16 

[VolvoGirl]

I'm in CA and have Vanguard funds. 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.

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 these 2 ….
US government obligations income information
https://investor.vanguard.com/content/dam/retail/publicsite/en/documents/taxes/USGO_012025.pdf

Tax-exempt interest dividends by state
https://investor.vanguard.com/content/dam/retail/publicsite/en/documents/taxes/INBST_022025.pdf

[JohnnyMac16]

I don't understand the 30%.

The post said the Vanguard statement showed: 

PERCENTAGE OF INCOME FROM US GOVERNMENT SECURITIES

Fed Source Total 0.30%

[frostily0495]

@MarilynG1 

Here is some details from 1099-DIV as is

https://imgur.com/a/UrNbQrh

Can you please confirm if I should be be multiplying box 1 with 0.30 or something else. 

Also what extra steps do I need to take if I am filing with CA state. I see @VolvoGirl mentioned additional steps to handle this. Is this needed. 

Thank you. 

[frostily0495]

@MarilynG1 @VolvoGirl 

Also, to try the suggestion, I checked the first box and in the amount field specified box 1 multiply by 0.30 which amounts to 1386.09 for me. This reduced my state tax in CA by 128 but the federal tax remained the same. Is this expected? 

Thanks. 

[mesquitebean]

@ razor5 

Please check your math.  In the original question on this page the figure shown is "0.30%"

0.30% =  0.003 in decimal form.   

You appear to have used 30% (decimal 0.30), which is way too much.

"PERCENTAGE OF INCOME FROM US GOVERNMENT SECURITIES

Fed Source Total 0.30%"

Edited for clarity 4/13/2025 at 4:45 PM Pacific

@ MarilynG1 

[mesquitebean]

@JohnnyMac16 

You are correct that when given the figure 0.30% in the original question, that translates to a decimal figure of 0.003

[frostily0495]

@mesquitebean 

After using 0.30% i.e. 0.0030 mutiple the amount is 13.98 something which gets rounded to 14. 

Later when I go to CA state tax form it asks me this about 14 dollar. What should I select here? 

[VolvoGirl]

For Vanguard......

You will need to calculate any amounts yourself using these tables.  Vanguard use to include these tables with the 1099 forms but now you have to get them online here.  There are 3

Tax information for Vanguard funds | Vanguard

You have to look up your fund.  If there is a * There is a footnote at the bottom that says that fund meets the threshold for California.   

[mesquitebean]

@ frostily0495 

I'm not a tax expert, and I don't know specifically about your fund, but in your original question you said it was a "Total Stock Market Index Fund ETF."    By that type of fund's definition it would definitely have less than 50% assets in US government obligations, and you, in fact, said that the fund reports that US Govt figure is only 0.30% .  i.e., it only has a very tiny smidge of US Govt obligations--as would be normal in a total stock market fund.

Likewise, a total stock market fund ETF, which is an extremely broadbased fund of stocks, would have no business holding a large number of California (or any other state) obligations, if it has any at all.  If it has any state obligations at all, I would guess the percentage for California is extremely low; i.e., a tiny fraction--but it may have none at all.   You could ask a Vanguard representative if you really wanted to nail it down.   But logically speaking, based on the type of fund ETF, if it were me, I'd assume that the percentage is very tiny, which would allow me to answer:

"yes, the dividends are from funds with less than 50% invested in US Govt and California obligations."   

When you indicate that, I would expect that California will then include that $14 as taxable (i.e., won't exclude it) because the fund has less than 50%.

[frostily0495]

@VolvoGirl Thank you. 

@mesquitebean Your logic makes sense to me. Thanks.