SIMPLE. FAST. ACCURATE
Support Center > Knowledge base> Article: Connecticut Exempt Dividends

Connecticut Exempt Dividends

Article ID: 58680 Email Print
Question
Connecticut Exempt Dividends

Answer

Exempt Dividends from Certain Qualifying Mutual funds Derived From U.S. Government Obligations

Enter the total amount of exempt dividends received from a qualifying mutual fund that are derived from U.S. government obligations. A mutual fund is a qualifying fund if, at the close of each quarter of its taxable year, at least 50% of the value of its assets consists of U.S. government obligations. The percentage of dividends that are exempt dividends should be reported to you by the mutual fund. Do not enter the amount of dividend income derived from Federal National Mortgage Association (Fannie Mae) bonds, Government National Mortgage Association (Ginnie Mae) bonds, and Federal Home Loan Mortgage Corporation (Freddie Mac) securities. Federal law does not prohibit states from taxing income derived from these obligations, and this income is taxable for Connecticut income tax purposes.

Example: A qualifying mutual fund pays a dividend of $100. Of the distribution, 55% is attributable to U.S. Treasury bills and 45% to other investments. The amount that should be reported here is $55.


related articles

Article Details
Views: 1799 Created on: Jun 15, 2013
Date updated: Jan 04, 2019
Posted in: States, Connecticut

Poor Outstanding