1099-DIV VUSXX
Vanguard's VUSXX is exempt from federal income tax.
When filling out the 1099-DIV income section, I checked yes on the box, "Is this a mutual fund that has U.S. Government interest income?" The next page states, "You've told us that this mutual fund has U.S. Government interest income. This income is not taxed by states" and asks for the amount of ordinary dividends that are from government interest, adjusting state tax return accordingly.
The problem is, the questions are related to state tax, but are not reflecting federal tax exemption. Is there a work around for this so my federal return isn't mistakenly deducted?
Thank you in advance!
Best Answer
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VUSXX is not exempt from federal taxes.
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Answers
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Thank you, I just saw that on some other forums as well, thanks for that confirmation!
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