Treasury MMF's distributions are non-qualified dividends on 1099. Treasury interest is exempt from State income tax.
I think distributions from Treasury MMF are also exempt from State Taxes. But can someone confirm?
TIA
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On Tuesday, June 6, 2023 at 10:41:57 PM UTC-4, Not A Clue wrote:generated by certain types of US government assets. (Sometimes, Treasury MMFs aren't 100% invested in US Treasuries.)
Treasury MMF's distributions are non-qualified dividends on 1099. Treasury interest is exempt from State income tax.
I think distributions from Treasury MMF are also exempt from State Taxes. But can someone confirm?
TIA
--Generally, yes. There are a few states that have special requirements, such as a minimum percentage of treasury assets, which could cause an exception to the general rule. There are also a some that limit the percentage to that percentage that is
Ira Smilovitz, EA
Leonia, NJ
On Wednesday, June 7, 2023 at 12:02:23 AM UTC-4, ira smilovitz wrote:generated by certain types of US government assets. (Sometimes, Treasury MMFs aren't 100% invested in US Treasuries.)
On Tuesday, June 6, 2023 at 10:41:57 PM UTC-4, Not A Clue wrote:
Treasury MMF's distributions are non-qualified dividends on 1099. Treasury interest is exempt from State income tax.
I think distributions from Treasury MMF are also exempt from State Taxes. But can someone confirm?
TIA
--Generally, yes. There are a few states that have special requirements, such as a minimum percentage of treasury assets, which could cause an exception to the general rule. There are also a some that limit the percentage to that percentage that is
Ira Smilovitz, EAThanks, Ira. I forgot to ask: Can you point me to some documentation that states these distributions retains it original income character?
Leonia, NJ
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On Wednesday, June 7, 2023 at 10:34:01 AM UTC-4, Not A Clue wrote:generated by certain types of US government assets. (Sometimes, Treasury MMFs aren't 100% invested in US Treasuries.)
On Wednesday, June 7, 2023 at 12:02:23 AM UTC-4, ira smilovitz wrote:
On Tuesday, June 6, 2023 at 10:41:57 PM UTC-4, Not A Clue wrote:
Treasury MMF's distributions are non-qualified dividends on 1099. Treasury interest is exempt from State income tax.
I think distributions from Treasury MMF are also exempt from State Taxes. But can someone confirm?
TIA
--Generally, yes. There are a few states that have special requirements, such as a minimum percentage of treasury assets, which could cause an exception to the general rule. There are also a some that limit the percentage to that percentage that is
nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git5.pdfYou would have to look at each state's tax laws. You should find some guidance in the tax return instructions, but you might have to look further for a specific publication from the state tax department. For instance, this is NJ's publication: https://Ira Smilovitz, EAThanks, Ira. I forgot to ask: Can you point me to some documentation that states these distributions retains it original income character?
Leonia, NJ
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Ira Smilovitz, EA
On Wednesday, June 7, 2023 at 8:14:01 AM UTC-7, ira smilovitz wrote:generated by certain types of US government assets. (Sometimes, Treasury MMFs aren't 100% invested in US Treasuries.)
On Wednesday, June 7, 2023 at 10:34:01 AM UTC-4, Not A Clue wrote:
On Wednesday, June 7, 2023 at 12:02:23 AM UTC-4, ira smilovitz wrote:
On Tuesday, June 6, 2023 at 10:41:57 PM UTC-4, Not A Clue wrote:
Treasury MMF's distributions are non-qualified dividends on 1099. Treasury interest is exempt from State income tax.
I think distributions from Treasury MMF are also exempt from State Taxes. But can someone confirm?
TIA
--
Generally, yes. There are a few states that have special requirements, such as a minimum percentage of treasury assets, which could cause an exception to the general rule. There are also a some that limit the percentage to that percentage that is
Ira Smilovitz, EA
Leonia, NJ
/nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git5.pdfThanks, Ira. I forgot to ask: Can you point me to some documentation that states these distributions retains it original income character?
--
You would have to look at each state's tax laws. You should find some guidance in the tax return instructions, but you might have to look further for a specific publication from the state tax department. For instance, this is NJ's publication: https:/
Ira Smilovitz, EA
For California, the Franchise Tax Board has this document: https://www.ftb.ca.gov/forms/2017/17_1001.pdf
with the "Taxable Interest Income" entry on page 5.
On Wednesday, June 7, 2023 at 1:54:12 PM UTC-4, Tom Russ wrote:It keeps it's character as a dividend and is subject to tax withholding. See IRC Section 871(h) and 871(i).
On Wednesday, June 7, 2023 at 8:14:01 AM UTC-7, ira smilovitz wrote:
On Wednesday, June 7, 2023 at 10:34:01 AM UTC-4, Not A Clue wrote:
On Wednesday, June 7, 2023 at 12:02:23 AM UTC-4, ira smilovitz wrote:
How about for non-residents (NRA) -- in terms of tax withholdings? Dividends from US sources have a withholdings rate of up to 30%, depending on the tax treaties. Corporate and Treasury interests are generally exempt from tax withholdings.On Tuesday, June 6, 2023 at 10:41:57 PM UTC-4, Not A Clue wrote:
So if a NRA has a position in a Treasury MMF, would there be a withholding because it is technically a dividend distribution? Or does the income character get passed through to the NRA MMF owner?
If the income character get passed through, can you point me to some documentation on that point?
TIA
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On Monday, June 12, 2023 at 8:42:18 AM UTC-7, Not A Clue wrote:
On Wednesday, June 7, 2023 at 1:54:12 PM UTC-4, Tom Russ wrote:
On Wednesday, June 7, 2023 at 8:14:01 AM UTC-7, ira smilovitz wrote:
On Wednesday, June 7, 2023 at 10:34:01 AM UTC-4, Not A Clue wrote:
On Wednesday, June 7, 2023 at 12:02:23 AM UTC-4, ira smilovitz wrote:
How about for non-residents (NRA) -- in terms of tax withholdings? Dividends from US sources have a withholdings rate of up to 30%, depending on the tax treaties. Corporate and Treasury interests are generally exempt from tax withholdings.On Tuesday, June 6, 2023 at 10:41:57 PM UTC-4, Not A Clue wrote:
So if a NRA has a position in a Treasury MMF, would there be a withholding because it is technically a dividend distribution? Or does the income character get passed through to the NRA MMF owner?
If the income character get passed through, can you point me to some documentation on that point?
TIA
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It keeps it's character as a dividend and is subject to tax withholding. See IRC Section 871(h) and 871(i).
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