Vangaurd 1099 footnote re U.S govt obligation percentage

[kls3806]

Three questions:

1.  Can I just multiply the percentage detailed in the VMFXX footnote against against the total ordinary dividends to determine the dollar amount that is tax exempt in Mass?

2.  This percentage appears to include both US securities and "other US government obligations"?  Does that matter?  I'm not sure what other US obligations includes.  I did check and the repo's are not included in this percentage.

3.  There is nothing in box 12 of the 1099-DIV because this is all taxable federally.  Where in turbotax do I make the adjustment in the state form?

[SteamTrain · Accepted solution]

@kls3806 

1) yes, you just multiply the % times the total ordinary dividends...but ONLY the total dividends that came from that fund.   i.e., depending on what you won, there may be other dividends form stocks and fund that add into the box 1a total on the actual  1099-DIV form.

2)  Vanguard only includes appropriate US $$ in that % value.

3) on the page after the main 1099-DIV form there is a checkbox where you indicate you have adjustments to make...then one of the checkboxes that shows up...you indicate you have US obligations to adjust for....that's the $$ from your Q #1.

[baldietax]

more info here in case you're just getting it from the statement

https://investor.vanguard.com/content/dam/retail/publicsite/en/documents/taxes/usgo-2025.pdf

1. yes but to clarify you need to use the amount in Box 1a that is coming from the fund with the USGO, in case you have other stuff in that account and contributing to Box 1a.

2. yes simply use the percentage as provided, it already takes into account use of repo etc

3. by answering the questions at the end of the 1099-DIV and providing the $ amount that is USGO, this should automatically flow into your state return as a subtraction from income, but check in your state return.  I can't speak specifically to MA and some states have odd requirements.

[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. I have 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

Here's the sheet I make every year for my Vanguard in California.  You have to get the Dividend for each fund by looking at the detail page from the Consolidated 1099.  Don't know what funds you can include for MA.  Not all mine have 50% assets in California.  You have to read the little footnotes in the US government pdf.

[kls3806]

Thank you.  Vanguard separates the accounts and only footnotes the appropriate one - in my case just a money market as we hold no US securities or obligations in our taxable account.  Also - no idea how I missed the checkbox.

Thanks

[kls3806]

Thanks - the only US securities/obligations I hold in a taxable account is the money market funds.  Vanguard delineates that amount clearly with the appropriate footnote designating the percentage.  Mass does exempt that and selecting the ensuing checkbox adjusts the state directly, without additional modifications.