Originally Posted by UnrealizedPotential
I was wondering for those in Bonds how much taxes are each month for your distribution?Do you pay Federal and State tax on the distribution?............
We have both a taxable and a tax-exempt fund in our taxable area. A year or two ago we switched the dividends on the taxable to come to us as cash, the tax-exempt still has the dividends re-invested. No state tax here. The dividends from the taxable bond fund are, well, taxable, whether they are re-invested or not.
This may be obvious, but just in case it isn't, If you want to get a handle on taxes:
Assume a taxable bond fund investment of X$
Look up a bond fund that you are interested in, find the share price and divide it into the X$ amount to get number of shares.
Look at the recent distributions of the fund to see the $ per share per unit of time. Many/most are monthly distribution. Do the math to get your total $ distributions for the past year.
Then you need to include that with your other income. A little bit of time with a tax form will do it, or play with TurboTax or the like to get your final answer.