Virginia tax due on federal exempt-interest dividends

[RHF52]

How do I calculate the Virginia tax due on federal exempt-interest dividends listed on my 1099 div statement? The exempt-interest dividends are from the T Rowe Price Tax Exempt Money Market Fund

[baldietax · Accepted solution]

T Rowe price should provide the % of fund's dividends by state, if not in your 1099-DIV/consolidated statement then go to the T Rowe website they should have a page for supplemental tax info by fund.  Try here

https://www.troweprice.com/personal-investing/resources/planning/tax/fund-specific/t-rowe-price-tax-...

Presumably this fund is hitting Box 12 on your 1099-DIV.  After inputting the 1099-DIV there should be an interview screen where you can specify the state(s) the Box 12 dividends came from.  You don't need to put in each state, just Virginia amount based on the % from the fund, and then the balance as "Multiple States".  Then check you see the Virginia amount flowing to your VA state return as a subtraction to income.

[RHF52]

Thank you very much!

[Suchin21]

I have this same question and just want to clarify to be sure I understand. When you say put in the Virginia amount based on the % from the fund, do you mean multiply the amount in box 12 by the percentage listed for Virginia for the fund in question?

The fund I am referring to is Invesco AMT-Free Municipal Income Fund. The percentage for this fund for Virginia is .4%.  If the amount in box 12 is $500, then I enter $2 ($500 x .004) for Virginia and $498 for multiple states, is that right? Then on my Virginia return $498 should flow through to be an addition to my Virginia AGI (listed as non-Virginia Municipal Interest)?

Thanks.

[baldietax]

sounds correct.  if you have multiple funds contributing to Box 12 then you have to figure out the total for each state based on all of them.  Something else I realized is US territories are also VA exempt so if the fund had income from Puerto Rico, US Virgin Islands, Guam etc then you can put those states/amounts in also.

Here's another recent thread with a good explanation

https://ttlc.intuit.com/community/taxes/discussion/1099-b-box-12-which-state-is-your-exempt-interest...