Exempt Interest Dividends

 

What are Tax Exempt Dividends?

tax dividendTax-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 Topics

Related Resources

Are Social Security Benefits Taxable?

Up to 50% or even 85% of your Social security benefits are taxable if your “provisional” or total income, as defined by tax law, is above a certain base amount. Your Social Security income may not be taxable at all if your total income is below the base amount.

Reporting Rental Income on Tax Return

Renting property comes with extra tax reporting. Learn what you need to know about reporting rental income on your tax return from the experts at H&R Block.

Obtaining An IRS Wage And Income Transcript

Do you need to get a copy of your wage and income transcript from the IRS? Learn more from the tax experts at H&R Block.

How To Report Patronage Dividends

How should you use form 1099-PATR to report a patronage dividend? Learn more from the tax experts at H&R Block.