Exempt Interest Dividends
What are Tax Exempt Dividends?
Tax-exempt interest from a mutual fund produces exempt-interest dividends when paid to the shareholder.
Are Exempt Interest Dividends Taxed?
Exempt interest dividends from mutual funds aren’t taxable, but you should report them on your return if you’re required to file. Dividends exempt from interest might be subject to Alternative Minimum Tax (AMT).
How Are Exempt Interest Dividends Reported?
Exempt interest dividends are reported to a taxpayer on Form 1099-DIV, whether or not it’s subject to AMT.
More Help with Taxable and Tax Exempt Interest Dividends
Don’t do it alone! For guidance on who pays interest dividends—and how much—contact a tax pro at H&R Block. Find a tax office location nearest you now!
Related Resources
Need a basic guide to investing? Learn investing tips and guidelines geared for millennials at H&R Block.
Should you open an IRA? Learn more about IRA advantages for both Roth and traditional IRAs, with this helpful list from H&R Block.
Learn more about IRA withdraw penalties with advice from the tax experts at H&R Block.
If you received an insurance check for an auto-accident claim, do you report this as taxable income? Learn more from the tax experts at H&R Block.