Exempt Interest Dividends

 

Tax-exempt interest from a mutual fund produces exempt-interest dividends when paid to the stock-holder. These dividends aren’t taxable, so you should report them on your return if you’re required to file.

Dividends that are exempt from interest might be subject to Alternative Minimum Tax (AMT). Your mutual-fund company should report this 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.

Related Topics

Related Resources

Is Supplemental Security Income Taxable?

Should you count supplemental security income as taxable income? Learn more from the tax experts at H&R Block.

Reporting 401K Rollover

Learn more about reporting a 401K rollover with tips from the tax experts at H&R Block.

IRS May Start to Tax Your Account in the Caymans

Have you ever thought about investing in a Cayman Islands tax haven? Before opening an account, or making adjustments to an already existing account, review these tax tips.

Nondividend Distributions

Learn more about nontaxable distributions on Form 1099-Div Box 3 and get tax answers at H&R Block.