If Wealthfront is monitoring multiple accounts to avoid the wash sale disallowance rule, the first taxable account to trade a security will block the other account (s) from trading in that same security for 30 days. g. Wealthfront gives investors access to a package of attractive features, including automatic portfolio rebalancing, tax loss harvesting and a portfolio line of credit. Tax-exempt interest dividends by state 1. government securities" (shown below in Column 1) by the amount for that fund in Box 1a of your Form 1099-DIV. Here's a direct shot to the XLS file for 2017. 37% 6. The effectiveness of the Tax-Loss Harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront Advisers and type of investments (e. 19. California: The Franchise Tax Board petitioned the California Office of Tax Appeals for rehearing of an opinion addressing whether the entire amount of qualifying. You’ll also get intelligent dividend reinvestment, tax-minimized withdrawals, and tax-sensitive rebalancing all at no additional cost. The table on the back shows the percentage of exempt-interest dividends regarding your state’s requirements. Other distributions and charges 17 . Deluxe to maximize tax deductions. Federal Tax-Exempt Dividend Distribution (from 2021 Tax Reporting Statement) Utah Exempt Percentage of Income (from table) Portion of Dividend Distribution that May Be Exempt from Utah Income Tax $1,000 X 19. In the dropdown, select your state and enter an amount. percentage of your fund’s tax-exempt income by state is outlined in the table on page three. 75 Florida 5. 48% New Mexico 0. They are exempt from federal taxes. You’ll need the amount reported to you in Box 13 of Form. Government obligations is generally exempt from state and local income taxes. ”Which tax documents should I be expecting? You should expect the following: For any taxable investment accounts with dividends or realized gains/losses, we’ll post a Consolidated 1099. Nonqualified or ordinary dividend: Taxed at an investor's ordinary. For background, the vanguard municipal fund consists of bonds from states across the nation. During normal market conditions, at least 80% of the Fund’s net assets will consist of tax-exempt securities. If the mutual fund satisfies the 50% plus criterion, you check that box and enter US govt. TurboTax Live tax expert products. Use Form 1116 to claim the Foreign Tax Credit (FTC) and subtract the taxes they paid to another country from whatever they owe the IRS. S. Employees must use this form to claim tax-exempt status for any reason by checking the appropriate box. This white paper summarizes the motivation, design, and execution of Wealthfront’s US Direct Indexing service. However, due to legislation, the tax on dividends and interest is being phased out. Details for each dividend received can be found in the Dividend & Distribution Details section towards the end of your Form 1099. That year, you paid $80 in investment interest expenses and had investment income of $160. Your tax documents can be found on the Documents page, which is accessed from the top menu of your account. See the Instructions for Form. A claim for refund has recently been filed with the Board of Equalization by a taxpayer that challenges that rule. You can find tax-exempt interest and dividends information in your 1099 form, on the page that says “Mutual Fund and UIT Supplemental Information. S. e. the portion of federally tax-exempt dividends derived from interest, on a state-by-state basis. 00% California 11. 95 Louisiana 0. Nonqualified dividends are taxed as income at rates up to 37% in 2023. 01% Connecticut 2. 7. Consistent with Utah law, these factors. That deferred tax liability needs to consider the following components: Withholding tax imposed on the dividend; State tax associated with the dividend; 986 Exchange Gain/LossWe will further assume the tax-advantaged accounts have a 9. The interest income from taxable bonds is subject to federal, state (and local, if applicable) income taxes. 2021 Foreign tax credit worksheet for eligible Vanguard funds. 75% = $87. Check I earned tax-exempt dividends in more than one state. For 2023, qualified dividends may be taxed at 0% if your taxable income falls below: $44,625 for those filing single or married filing separately, $59,750 for head of household filers, or. , taxable or nontaxable) or holding. We are required to report to you and the Internal Revenue Service all tax‑exempt dividend income on Form 1099‑DIV. 31% (0% in CA, CT, NY) Fidelity Treasury Money Market Fund (FZFXX) 0. *Percentages are the same for all fund classes (Investor, Advisor, and I classes). Highlight April 18, 2022 on your calendar before you do anything else. TurboTax Live tax expert products. 37% 0. Deluxe to maximize tax deductions. Page Last Reviewed. About this Benchmark. 19% Connecticut 0. 71%. The account minimum required to qualify for Stock-level Tax-Loss Harvesting is $100,000 and Smart Beta is $500,000. To determine the portion of dividends that may be exempt from your state income tax, multiply the amount of “ordinary dividends” reported in Box 1a of Form 1099-DIV by the percentage listed in the following table. FDIC insurance is not provided until the funds arrive at the program banks. If shareholders received a taxable capital gain distribution, that information is also reported on Form 1099-DIV. 08 Missouri 0. In addition, state taxation of retirement benefits is a moving target. 25; %, which is on par with competitor Betterment’s 0. The effectiveness of the Tax-Loss Harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront Advisers and type of investments (e. Table 2: Tax-exempt interest dividends by state for 2021 Notes: The information provided above applies to all share classes of a fund, including ETFs. The effectiveness of the Tax-Loss Harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront Advisers and type of investments (e. Give Copy 2 to the recipient for use in filing the recipient's state income tax return. Here are the after tax rates for the Treasury MM funds mentioned above. Until then, the tax rate on dividend and interest income in New Hampshire declines every year until it reaches zero. 2023. 25%. S. 14 Nevada 1. It has the flexibility to invest in higher income securities across the ratings spectrum. Tax‑exempt interest earned is reportable on Form 1099‑DIV. Our tax-advantaged accounts. Losses are recognized, but the overall asset class distribution. Hand off your taxes, get expert help, or do it yourself. Federally tax-exempt income dividends Calculate how much of a fund’s federally tax-exempt income dividends can be excluded from your state taxable income. Taxes on interest: If your investment. box 11, shows exempt-interest dividends from a. Other additional information 17of your exempt-interest dividends may be exempt from state income taxes depending on the state in which you reside (see your “2022 Tax Information Letter”). The information contained herein is based on current tax laws, which may . Fidelity Mutual Fund Tax Information The fiscal problems of state and local governments are well known, and the sometimes perilous state of municipal budgets has led to relatively high yield spreads on all tax-exempt bonds. Treasury interest is state tax-exempt only if you receive it directly from the Treasury. The information provided is current as of the date of this writing, for. Wealthfront’s Automated Bond Portfolio is designed to earn a higher yield than our Cash Account with less risk than investing in equities, via a diversified lower-risk, higher-yield portfolio of bond ETFs. Foreign country or U. S. Above those thresholds, up to 85% of your benefits could be taxed. • Box 16 State tax withheld Do your taxes online! AB shareho. , taxable or nontaxable) or holding. 05% 0. TurboTax Live tax expert products. com. If any holder (individual, fund or otherwise) purchases such a qualified municipal obligation on the sec ondary market at a discount to Here are eight ways you can get ready for Tax Day, whether you’re working with an accountant or using tax preparation software like TurboTax. Box 14-16 are used to report state information. Thus, the savings from this capability can be quite substantial. We recommend you consult a tax advisor on any questions about state or federal tax treatment of 529 plans. State and local tax treatment. Fidelity Mutual Fund Tax InformationThe fiscal problems of state and local governments are well known, and the sometimes perilous state of municipal budgets has led to relatively high yield spreads on all tax-exempt bonds. 8% to a taxable accounts returns, on average. Although state tax laws differ, many states do not tax interest on the bonds they issue or on interest from municipal bonds issued within the same state. Government bonds to qualify for a percentage of the fund’s income to be exempt from state and. 019. 36 North Carolina 1. Client acknowledges that the Wealthfront Advisers and Wealthfront Brokerage are subject to certain anti-money laundering (“AML”) and related provisions under applicable laws, rules, and regulations and areWithdrawals are also tax-free. Generally, the U. It also lists any portion of those payments that is classified as specified private activity bond interest. 00 may be exempt from state tax. The institutional investor owned 25,742,498 shares of the company’s stock after selling. For shares acquired on or after January 1, 2012, only dividends from Indiana sources and dividends from U. DISCUSSIONIt’s taxed at normal tax rates for federal income tax but it’s still exempt from state and local taxes. In this case, the mutual fund will issue exempt-interest dividends. S. The fund's investment objective is to provide you with a high level of current income exempt from federal income tax, consistent with the preservation of capital. 25% versus 5. All dividends are taxed as ordinary income. The dividend tax rate on qualified dividends is the capital gains tax rate, which ranges from 0% to 20%, depending on what tax bracket the investor is in. However, currently, the state has a 5% tax on dividends and interest. 06% 0. If less than 95% of the federally tax-exempt interest dividend from a. Amount Subject to the NIIT. So. Senate Bill 588 (Chapter 165, Acts of 2001), entitled “Maryland Health andQualified dividend: Taxed at the long-term capital gains rate, which is 0%, 15% or 20%, depending on an investor's income level. Federal Utah Exempt Tax-Exempt Dividend. S. Exempt-interest dividends are usually interest payments on state or municipal bonds. When you invest elsewhere, you can typically expect a bunch of fees: commissions, transfer fees, maintenance fees, inventory markups, PFOFs… the list goes on. mutual fund or other RIC paid to you during the. When you invest elsewhere, you can typically expect a bunch of fees: commissions, transfer fees, maintenance fees, inventory markups, PFOFs… the list goes on. Today I am excited to announce the first significant improvements to Wealthfront’s investment service since I joined the company as chief investment officer. 3%, Illinois 7. Percentage of eligible income : from U. TurboTax Live Full Service Business Taxes. State income tax can vary widely across states. $14,451+: 37%. Contact them if you don't have this paperwork. If you are: In the 10% or 12% tax bracket, your qualified dividends are taxed at 0%, In the 22%, 24%, 32%, or 35% tax bracket, your qualified dividends are taxed at 15%, and. Further, other states, such as Wisconsin, limit the tax exemption on federally Exempt Interest Dividends to certain specified home state bonds. The 2019 Form 1099-DIV reports Noncash liquidation distributions in Box 10 and Exempt interest in Box 11. For shares acquired on or after January 1, 2012, only dividends from Indiana sources and dividends from U. S. Exempt-interest dividends are often associated with mutual funds that invest in municipal bonds. If you are unsure whether this. , taxable or nontaxable) or holding. Enclosed is information that, together with your Form 1099-DIV, will assist you in completing your 2022 income tax return: Form 1099-DIV reports the taxable income dividends,. , taxable or nontaxable) or holding. The Tax-Exempt Bond Fund of America did not pay any federally tax-exempt income dividends derived from municipal bond interest subject to AMT. The 5. Capital Group Municipal Income ETF. 5%, you get an estimated $562. However, if, for some reason, your investment didn’t perform as well as expected and you had only $20 of capital gains investment income, you could only deduct $20 of. The 1099-DIV form doesn’t have a special box broken out for dividends attributed to. 28% (MA 1. In the risk score 8 portfolio (one of our most commonly-chosen. You’ll have to divide your trades into those you held for one year or less, known as short-term trades, and those held longer. Currently closer to 75% (3/2023). 24 Kansas 0. Any dividends from a nonprofit organization or other tax-exempt corporation; Dividends paid by a corporation on securities that an employee holds in an employee stock ownership plan maintained by. 43%. October $1,000 x 1. 7% (per our whitepaper). They will typically tell you in percentages, like California 12. TurboTax Live Full Service Premium. The My Best Now tab shows you which fund has the highest after-tax yield right now for the tax rates you entered. total ordinary dividends . However, the dividends from the treasury fund (VUSXX) is tax exempt at the state level, and the dividends from my municipal funds (VCADX) is tax exempt at levels of federal and state. 28% + GUA 0% + PR 0% + VI. The information contained herein is based on current tax laws, which may change in the future. Exempt-interest dividends are usually interest payments on state or municipal bonds. 16 . California. (It should go on Schedule M, Line 22. In accordance with IRS requirements, your tax-exempt income will be reported to you on Form 1099-DIV. Exempt-interest dividends and. 74%Dividends and qualified dividend distributions details 17 . Exempt-interest dividends will not be listed on Schedule B, but will be included on Form 1040, line 2a as tax-exempt interest. 1-322 C provides a subtraction, to the extent included in federal adjusted gross income, for: 1. 10 months ago. The tax status of a capital gain distribution is determined by how long the mutual fund held the underlying security that was sold, not by how long you have been invested in the fund. After-tax benefit in 2022: If you used Tax-Loss Harvesting in a Classic portfolio in 2022, our service harvested enough losses across all client vintages. So, to be clear, when I click the box "A portion of these dividends is U. For exemptions that do not require the collector to obtain documentation from customers but require certain criteria be met to qualify for the exemption, the collector must keep. 6D reports any tax exempt dividends that were distributed in your taxable investment account. Burton G. A summary of the Dividends Tax rates as per the South African Double Taxation Agreements currently in force has been split into two parts, Africa and the. If you have questions about any of the forms you've received from Invesco, please contact an Invesco representative at (800) 341-2929 Monday through Friday, 7:30 a. I'll go ahead and link that below for those who may be unaware. The Gabelli fund is an oddball with high duration/life vs. Wealthfront Investment Methodology White Paper How to build and manage a diversified investment portfolio Introduction Wealthfront aims to deliver an automated investment management service that maximizes the net-of-fee, after-tax, real investment return for each client’s particular tolerance for risk. The effectiveness of the Tax-Loss Harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront Advisers and type of investments (e. A client may request spousal monitoring online or by calling Wealthfront at 844-995-8437. If these codes are entered, dividends for Hawaii purposes are treated as regular taxable dividends. A look at your 2022 Tax. securities in order for any dividend income derived from these obligations to be exempt from state income tax. “If the mutual fund has at least 50% of its assets invested in tax-exempt U. The fund base currency is USD. S. Territories and U. Exempt-interest dividends are payments issued by mutual funds that are not subject to federal income taxes. 🙋Quick Q: What’s a 30-day blended SEC yield? TAX-EXEMPT INTEREST DIVIDENDS BY STATE AND US POSSESSIONS State % State % State % State % State % State % Alabama 0. For any other. At the State prompt, select “Multiple States” at. X 9. At Wealthfront, we’re constantly looking for ways to make our products and services even better to help you build long-term wealth on your own terms. 72% 5. Distributions generally are subject to federal income taxes and may be subject to state and local taxes, whether you reinvest them or take them in cash. There's no way to turn this off, unfortunately. State and local tax treatment. I can't figure out how to enter that adjustment in my Illinois return. 0489. Columbia 2. Likewise, federal bonds issued by the government are usually tax-exempt at the state and local levels. for 2017, anyway. Single State Municipal Funds The information below summarizes the percentage of exempt inte rest income received by various BlackRock Closed-End Funds on a s tate-by-For the Vanguard Federal Money Market Fund, this percentage was 37. government securities" (shown below in Column 1) by the amount for that fund in Box 1a of your Form 1099-DIV. Highlight April 18, 2023 on your calendar before you do anything else. 00% 0. ) TurboTax only imports state exempt interest from Federal and it appears to be a non-editable amount. In most cases, that would be mutual funds composed of municipal bond investments. 25%. ”. Vanguard Variable Insurance Funds: Special tax information. When you buy VWRL for example, that is functionally the same as converting GBP to USD and buying VWRD. 63 Arizona 1. TurboTax Self-employed & investor taxes. TAX-EXEMPT FUNDS % AMT Arizona Tax-Exempt 1. TurboTax Live Full Service Premium. 2. CONTINUED-2-National Limited National High Yield AMT-Free Maturity Municipal State / Municipal Municipal Municipal Municipal Opportunities Territory Income Fund Income Fund Income Fund Income Fund Fund New Jersey 5. ) TurboTax only imports state exempt interest from Federal and it appears to be a non-editable amount. The effectiveness of the tax-loss harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront and type of investments (e. You can find the state on more detailed info sent from your financial provider. If there were no security sales or dividends paid into your account, you will. Free Military tax filing discount. g. 50 Mississippi 0. Burton G. 00% Arkansas 0. The forms they give you are super complicated and small print. Market discount on tax-exempt bonds, as well as swap gains, are Taxable distributions 2022 Form 1099-DIV or substitute Form 1099. Vanguard Tax-Exempt Bond Index ETF (VTEB). Iowa Iowa Admin. Email us. On the following pages, you will notice funds marked with an asterisk (*). 06 Louisiana 0. 6D reports any tax exempt dividends that were distributed in your taxable investment account. Code §58. 62%these dividends are tax-exempt, the amount you receive must be reported with any other tax-exempt income on. Use our interactive worksheets to figure out how much of the dividend income distributed by funds you own may be subject to federal and state income taxes. Does anyone know where I can find which state it is for the except tax? On form 1099-DIV?No, your box 12 amount is dividends from investments that are exempt from federal tax. 2018 Qualified Interest Income (QII) Dividend Report for NRA for the iShares Funds Feb 1, 2019 2018 Distribution Summary Information Jan 31, 2019 2018 Tax Exempt Interest by State Jan 31, 2019 2018 U. Wealthfront. This paper describes the methodology. 80% Colorado 1. ago. The percentages of income earned by the funds from each state or U. In this example, $29. We assume a combined ordinary income tax rate of 30. A percentage of the income is exempt from state income tax. This low-cost portfolio is hand-picked by our research team, and is diversified and optimized for the long term. Important information to guide you and your clients through tax season. Check the. (See Part 3 for additional information. We charge a small, 0. US Direct Indexing is available for taxable accounts of at least $100,000, and once your account balance reaches. Exempt-interest dividends $ 13 . (prior to October 22, 2012), and IEMG thereafter. 09%. TurboTax Live Premium. It seems clear, however, that qualified dividends are indeed a subset of ordinary dividends (“Qualified dividends are the ordinary dividends that are subject to the same 5% or 15% maximum tax rate that applies to net capital gains” (IRS Publication 550 (for 2004 Returns), p. Only tax-exempt bonds from your specific state get the tax-exempt benefit when it comes to state income taxes. All $10 is free of federal income tax, HOWEVER, that $10 is still typically taxed at the state level. The percentage for direct US government obligation. only the portion of fund income dividends earned from the shareholder’s state of residence (and from U. The effectiveness of the Tax-Loss Harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront Advisers and type of investments (e. 39. 30 Ohio. A client may request spousal monitoring online or by calling Wealthfront at 844-995-8437. 75% 6. 3. 8. It also offers other financial services, including a cash management account, retirement accounts, 529 college savings plans and a comprehensive wealth-planning tool. This past year Wealthfront lowered the minimum account balance required to take advantage of Stock-level Tax-Loss Harvesting to $100,000. If your marginal state income tax rate was 10%, that would be a ~$38 tax savings for every $1,000 in total interest. Employees that want to claim exempt from Minnesota income tax must use the following form: Form W-4MN, Minnesota Withholding Allowance/Exemption Certificate. Please consult a tax advisor to determine whether your state allows a tax exemption for that portion of exempt-interest dividends attributable to your state. S. If you are importing a 1099-DIV and Box 11 (Exempt Interest Dividends) is not $0, TurboTax will show you a screen which asks: “Choose the state where your tax-exempt dividends came from. REITs. My Edward Jones tax statements, which lists $378 in tax exempt dividends, doesn't specify which state the $378 of exempt-interest dividends are from. 1. obligations and/or in California or its municipal obligations, that amount of dividend is exempt from California tax. This section lists federal tax-exempt interest and exempt interest dividends you received, by security. Although the income dividends paid by RVNU are derived from tax-exempt interest income that is generally exempt from U. $1,000 . ” At the State prompt, select “Multiple States” at the very bottom of the drop-down menu and uncheck the box for “I earned tax-exempt dividends in more than one state. The following table shows the earnings from each state’s municipal bonds as a percentage of the total tax-exempt distributions paid by the fund. , taxable or nontaxable) or holding. California, Connecticut, and New Yorkvidendexempt di income only when a fund has mte a certain. Minnesota Residents: 100% of your federal tax-exempt dividends for this fund are subject to Minnesota Income Tax. A few years ago, taxpayers were able to exclude up to $4,050 for each eligible individual off their. This past year Wealthfront lowered the minimum account balance required to take advantage of Stock-level Tax-Loss Harvesting to $100,000. 87% 8. 20. Since our funds are national, you may need to select “More Than One State” when you file your taxes. For Utah residents, 20% of the dividends. Here's a direct shot to the XLS file for 2017. Vanguard Short-Term Tax. 13% pre-tax). 8787. Your tax preparer or tax software should be able to provide additional guidance on this topic. ) Box 13: Specified Private Activity Bond Interest Dividends If you are subject to the alternative minimum tax (AMT),During 2022, I invested in SGOV, an ETF which holds 0-3 month Treasuries. 21% 1. 12 . Check I earned tax-exempt dividends in more than one state. I can't figure out where to find this information in my forms I downloaded from WF. All Wealthfront clients with Automated Investing Account balances between $100,000 and $475,000 can choose to use Wealthfront’s US Direct Indexing service, which seeks to enhance clients’ after-tax returns (clients with taxable accounts. To determine this amount for each of your funds, multiply the "% of dividends from U. 50 . I’ll detail the changes below, but I also. 51% Arkansas 0. CONTINUED-2-National Limited National High Yield AMT-Free Maturity Municipal State / Municipal Municipal Municipal Municipal Opportunities Territory Income Fund Income Fund Income Fund Income Fund Fund New Jersey 5. A simple tax return is one that's filed using IRS Form 1040 only, without having to attach any forms or schedules. Though exempt from federal income tax, interest dividends from municipal bonds may or may not be exempt from state taxes. Any dividends earned in these accounts are tax-free, as long as you obey the withdrawal rules. This amount is included in box 11. You can select More than one state and continue if you: - Live in a state with no income tax (AK, FL, NV, SD, WA, WY) - Live where. " To enter. US Direct Indexing , formerly known as Stock-level Tax-Loss Harvesting, is an enhanced form of Tax-Loss Harvesting that looks for movements in individual stocks to harvest more tax losses and lower your tax bill even more. Mutual funds that invest in municipal bonds distribute exempt-interest dividends. government securities. 30% (0% in CA, CT, NY) The income earned in these funds is fully taxable at the federal level. Account is for long-term, about 10-20 yrs out. Email us. 13. How do I proceed? Choice #1 (simplest for that low amount): go to the bottom of the list of states and indicate "Multiple States" for all of it (desktop software uses the term " More. ”. In the dropdown, select your state and enter an amount. State/Jurisdiction BlackRock Allocation. REITs. 5K subscribers in the wealthfront community. You also may receive distributions through your interest in a. This form will also report any interest paid out in your cash account. The Bloomberg Municipal Managed Money 1-25 Years Index is designed to track the U. As with the ESG score, the Socially Responsible portfolios see a sizable improvement in this metric, from an average of 154. Federal and State Taxes Please note tax-exempt income dividends paid by the tax-free funds are exempt from Federal Income Tax and will be reported on Form 1099-DIV. In most cases, that would be mutual funds composed of municipal bond investments. PDF. If, during 2022, you were a Utah resident and owned shares of any of the funds listed in the table on the following. Form 1099-DIV, box 12, shows exempt-interest dividends subject to the. Portion of total ordinary dividends that may be state tax–exempt . 2. TurboTax will ask you about any dividends that are exempt from interest. 00% District Of. 59% Tax-Advantaged Ultra-Short Fixed Income 6. If your state does not have a percentage listed, the entire amount in Box 11 (Exempt-interest dividends) of your 2022 Form 1099-DIV. , taxable or nontaxable) or holding. Maybe in the future they'll add recurring withdrawals. Account minimums for Wealthfront exclusives (the Risk Parity Fund, US Direct Indexing, and Smart Beta) To invest in US Direct Indexing (formerly known as Stock-level Tax-Loss Harvesting) you’ll need to deposit at least $100,000 in your account. These improvements help minimize taxes and increase returns without exposing clients to more risk. For single filers, you pay a 0% capital gains rate for up to $44,625. For example, some states only exempt dividends for those funds holding a minimum percentage, usually 50%, of governmentTo determine the portion of dividends that may be exempt from state income tax or investment tax, multiply the 'Total Ordinary Dividends' amount for each applicable fund reported in Box 1a of Form 1099-DIV by the percentage listed in the table. Follow. Earn 5. All Wealthfront taxable accounts (individual, joint or trust) are eligible for Daily Tax-Loss Harvesting. Interest from Treasury bonds is typically exempt from state income tax, so we include more of them for clients in higher. Taxpayers will often receive a Form 1099-DIV for all dividends in excess of $10 or more earned from any single entity.