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State Tax Exempt Mutual Funds VUSXX

Does Turbo Tax handle Vanguard state tax exemptions automatically such as Vanguard VUSXX or does it need adjusted automatically?

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5 Replies

State Tax Exempt Mutual Funds VUSXX

See @baldietax  response. 

State Tax Exempt Mutual Funds VUSXX

I think a misunderstanding there, Box 12 is for munis, VUSXX is a Money Market fund so this is related to government interest which will be part of the ordinary dividends in Box 1a.

 

After the 1099-DIV has been put in there is a question for "uncommon situations" which is actually pretty common these days, whether "a portion of these dividends is US Government Interest" and then you have to tell TT how much this was.  That amount will then flow automatically to state returns as a subtraction to the Federal AGI

 

To know how much to put in, you have to multiply the dividends from this fund that are part of Box 1a, by the % provided by Vanguard either in the statement if held with Vanguard or the tax info for mutual funds on their website, see https://investor.vanguard.com/content/dam/retail/publicsite/en/documents/taxes/USGO_012025.pdf

 

Good news, it looks like VUSXX was 100% in 2024 but please confirm for yourself.

 

Not a CPA/Expert and this is my experience based on desktop software and manual input of 1099s, but I assume the same principle applies to TT Online or importing 1099s.

State Tax Exempt Mutual Funds VUSXX

I can confirm this worked for me, excellent answer by baldietax.

State Tax Exempt Mutual Funds VUSXX

thanks, but as I was reviewing the info I entered, I was not asked this question again.  Is there a way to go in and double check the numbers I entered?

State Tax Exempt Mutual Funds VUSXX

what version of TT are you on... in the desktop premier version it will ask the questions again if you click on the 1099-DIV and review the boxes then hit continue.

 

Forms view may be easier tho (especially with the recent bad changes to 1099s in the desktop version which no longer show the summary of 1099-INT or 1099-DIV separately), then click on the 1099-DIV it should show the Box 1a and the amount designated as US Gov Interest right below it.

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