What Is an Exempt-Interest Dividend?

An exempt-interest dividend is a type of dividend that is exempt from federal income tax. Exempt-interest dividends are typically paid by mutual funds that invest in tax-exempt bonds. When a fund pays an exempt-interest dividend, the dividend is not subject to federal income tax, but it may be subject to state and local taxes.

Do tax free dividends count as income?

The answer to this question depends on the specific tax laws of the country in question. In many countries, tax-free dividends do count as income, but the tax rate on dividends is lower than the rate on other types of income. In other words, tax-free dividends are still taxable, but at a lower rate. Where do I report my 1099-DIV Box 11? There are two places where you need to report your 1099-DIV Box 11 information. The first is on your federal income tax return. You'll report the total amount of dividends received from all sources on Line 9a of Form 1040. Then, on Line 9b, you'll report the total amount of qualified dividends received. Qualified dividends are those that meet the requirements to be taxed at the lower capital gains tax rate.

The second place you'll need to report your 1099-DIV Box 11 information is on your state income tax return. The rules for reporting dividends on state income tax returns vary from state to state, so you'll need to check with your state tax agency to find out how to report your dividends. Do I need to report tax-exempt dividends? Yes, you will need to report tax-exempt dividends on your tax return. These dividends are not subject to income tax, but they are subject to other taxes, such as capital gains tax. How do you declare dividends on your tax return? If you are the owner of a dividend-paying stock, you will need to declare the dividend income on your tax return. Dividends are considered taxable income, and are subject to the same tax rates as other forms of income.

To report dividend income, you will need to have a 1099-DIV form from the company that paid the dividends. This form will show the total amount of dividends paid to you during the year.

Dividends are reported on Schedule B of Form 1040. On this schedule, you will list the total amount of dividends received from all sources. This total is then carried over to Line 9a of Form 1040, where it is included as part of your total taxable income.

How do I enter exempt interest dividends earned from multiple states in a bond fund Turbotax?

When you enter your information for your bond fund in TurboTax, you will be asked to specify the state in which the fund is located. If the bond fund holds bonds from multiple states, you will need to specify the state of each bond in the fund in order to accurately calculate your taxes.

When you enter your bond fund information, you will be asked to specify the percentage of the fund that is invested in each state. This information is used to calculate the taxes you owe on the fund's earnings.

If you have any questions about how to enter your bond fund information in TurboTax, you can contact TurboTax customer support for assistance.