are exempt dividends exempt from amt
DEFINITION of 'Exempt-Interest Dividend'. A distribution from a mutual fund that is not subject to income tax. Exempt-interest dividends are often associated with mutual funds that invest in municipal bonds.While exempt-interest dividends are not subject to federal income tax, they may still be subject to state income tax or the Alternative Minimum Tax (AMT).The dividend income must be reported on the income tax return, and it is reported by mutual funds on Form 1099-INT.EFINITION of 'Exempt-Interest Dividend'. A distribution from a mutual fund that is not subject to income tax. Exempt-interest dividends are often associated with mutual funds that invest in municipal bonds. 3. Under the AMT, a portion of your income may be exempt from tax. For the 2013 tax year, the exemption amounts will be $80,800 for married joint filers and $51,900 for unmarried individuals, but the exemption is subject to phase-out based on income. If you have certain private activity bonds that are not exempt from the AMT, they pay a slightly higher rate of interest to compensate for the lack of exemption. 2  Therefore, if you are subject to the AMT, you'll have to include interest from these bonds as part of your taxable income. Time your capital gains. Under the AMT, a portion of your income may be exempt from tax. For the 2013 tax year, the exemption amounts will be $80,800 for married joint filers and $51,900 for unmarried individuals, but the exemption is subject to phase-out based on income. If you have certain private activity bonds that are not exempt from the AMT, they pay a slightly higher rate of interest to compensate for the lack of exemption. 2  Therefore, if you are subject to the AMT, you'll have to include interest from these bonds as part of your taxable income. The Tax-Exempt Bond Fund of America® did not pay any federally tax-exempt income dividends derived from municipal bond interest subject to AMT. You’ll need the amount reported to you in Box 11 of Form 1099-DIV, Specified private activity bond interest dividends, to calculate your AMT if that tax applies to you.ll or some of your federally tax-exempt income dividends may be taxable in your state or jurisdiction. In fact, some states, such as California, require that mutual funds report the amount of federally tax-exempt income dividends paid to residents of those states. 1 Exempt interest dividends may affect your deduction for investment interest expense and other investment expenses. 2  Exempt interest dividends may be partly or entirely subject to the alternative minimum tax (AMT).3  Some or all of your exempt interest dividend may be subject to state income tax.ax rules that apply to exempt interest distributions you may receive from a mutual fund. Some mutual funds are established to provide a way to invest in municipal bonds and other securities that produce tax-exempt interest. Distributions from these mutual funds are usually composed mainly of tax-exempt interest. Any federally tax-exempt income dividends you received from American Funds in 2014 are subject to special state income tax considerations. (These dividends are reported in Box 10 of Form 1099-DIV and on your year-end statement.).ll or some of your federally tax-exempt income dividends may be taxable in your state or jurisdiction. In fact, some states, such as California, require that mutual funds report the amount of federally tax-exempt income dividends paid to residents of those states. The federally tax-exempt income dividends from these funds may be excluded from state taxable income in their states. For example, if you are a California taxpayer, all of the federally tax-exempt income dividends from The Tax-Exempt Fund of California may be excluded from your California taxable income.ll or some of your federally tax-exempt income dividends may be taxable in your state or jurisdiction. In fact, some states, such as California, require that mutual funds report the amount of federally tax-exempt income dividends paid to residents of those states. For investors in American Funds Tax-Advantaged Income Portfolio, 60.32% of the dividends you received (as reported under Year-to-date: Dividends” in the Activity Detail section of your year-end statement) were exempt-interest dividends.ll or some of your federally tax-exempt income dividends may be taxable in your state or jurisdiction. In fact, some states, such as California, require that mutual funds report the amount of federally tax-exempt income dividends paid to residents of those states. 1 Exempt interest dividends must be reported on your income tax return. 2  These dividends may affect the amount of tax you pay on your social security income. 3  Exempt interest dividends may affect your deduction for investment interest expense and other investment expenses.ax rules that apply to exempt interest distributions you may receive from a mutual fund. Some mutual funds are established to provide a way to invest in municipal bonds and other securities that produce tax-exempt interest. Distributions from these mutual funds are usually composed mainly of tax-exempt interest. Note: Income of less than $10 from a tax-exempt fund is reported on your Vanguard year-end account statement. Some of this income also may be attributable to private-activity bonds and thus must be included in your AMT calculation.To determine the amount, if any, that must be included, call us at 877-662-7447.ll tax-exempt income (of $10 or more) that you receive from a fund during a given year is reported in Box 10 of the form. The portion of income in Box 10 derived from AMT tax-preference items, such as private-activity bonds, is reported in Box 11.
Yes