Tax-exempt interest received by a mutual fund produces exempt-interest dividends when paid to the stock holder. Although exempt-interest dividends aren't taxable, report them on your return if you're required to file.

Exempt-interest dividends might be subject to Alternative Minimum Tax (AMT). Your mutual-fund company should report this information on the tax statement it sends you. If it isn't reported, contact the mutual fund administrator to find out if the amount is subject to AMT.