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Entering 1099 mutual fund dividends with different treasury obligation percentage
Old 02-15-2024, 05:42 PM   #1
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Entering 1099 mutual fund dividends with different treasury obligation percentage

I live in a state where treasury obligations are tax exempt. I use H&R desktop program but their help screen didn't help enough.
I hope there are some folks here that have a similar need.
I called H&R twice but after starting a conversation, I got disconnected so I hope I can get an answer here.
I know how to enter multiple dividends with the different treasury percentages but don't know if the Payer's name and Account number remain the same on all entries? Can I also summarize the mutual funds with little or no treasury obligations?
Thanks in advance
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Old 02-15-2024, 07:05 PM   #2
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The 1099-DIV forms are not filed with your tax return. The IRS already have copies of them, from the Payer. The entries in the software can be used for you own documentation.

For example, I have the same situation in my state, so I could have one 1099-DIV entry labeled "Fidelity-fund with treasury obligations" and enter the information for that fund there. I could have another entry labelled "Fidelity-other funds", and have the dividend information for all of those funds in that entry.

You just have to make sure, if you split it that way from a single 1099-DIV that you were sent, that the totals match the totals of the 1099-DIV.
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Old 02-15-2024, 07:58 PM   #3
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Sounds like your brokerage firm is sending you a combined 1099-Div for a number of funds.
While I am not familiar with the Block software, on the 1099-Div reporting page it should provide a spot which says "amount exempt from state taxes" or something similar then asks for your state.
So figure out your total state exempt amount, fill out one 1099-Div reporting page with the summary numbers provided by your broker and add in the exempt amount in the appropriate spot.
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Old 02-15-2024, 08:12 PM   #4
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I just went through this mess myself w/ H&R Block Deluxe and my single 1099-DIV form covering lots of sources. I gathered all my percentages for all my various MM dividends in my taxable account....and after talking to H&R (who didn't have an answer)....figured it out myself.

At the bottom of your 1099-DIV, there is a box you can check for "From US Treasury Obligations". If you check that, they then ask you for the "Percentage from US Treasury Obligations." I am lazy, so I added up all my MM total dividends (based on the respective % that could be exempt) and then determined the percentage against ALL my dividends and entered that here.

TECHNICALLY, the instructions try to tell you to enter a new 1099-DIV for each individual item with a different percentage but uh, eff that.

Now dealing with removing the accrued pre-paid interest on secondary bond purchases (and figuring which was earned this tax year and which I have to remember to handle on next year's return), removing GSE interest that doesn't cleanly flow to the state return as excluded, and accrued market discount on secondary bond purchases...........ugh, my transition to substantially more self-purchased fixed income has added hours of learning to my tax filing this year.

Good luck!
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Old 02-15-2024, 08:19 PM   #5
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Quote:
Originally Posted by jollystomper View Post

For example, I have the same situation in my state, so I could have one 1099-DIV entry labeled "Fidelity-fund with treasury obligations" and enter the information for that fund there. I could have another entry labelled "Fidelity-other funds", and have the dividend information for all of those funds in that entry.
So, using your example, if I had 3 mutual funds at fidelity with 3 different treasury percentages, I would have a separate 1099 entry for each fund with payee name as "Fidelity-fund with treasury obligations" and the fidelity account number would remain the same for all 3 lines.
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Old 02-15-2024, 08:57 PM   #6
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Quote:
Originally Posted by MJ View Post
So, using your example, if I had 3 mutual funds at fidelity with 3 different treasury percentages, I would have a separate 1099 entry for each fund with payee name as "Fidelity-fund with treasury obligations" and the fidelity account number would remain the same for all 3 lines.
Yes. The account number does not matter. All the software is going to do is aggregate what you enter. You put the payer name however you see fit. Payer name and account number are for *your* benefit - only payer name goes onto the return (Schedule B), not the account number. I just include the Payer name (like Fidelity) with a short description that makes sense to me.

Or... you could do what imbatman does (which is actually what I do, as my 1099-DIVs are relatively simple):

Quote:
Originally Posted by imbatman View Post
At the bottom of your 1099-DIV, there is a box you can check for "From US Treasury Obligations". If you check that, they then ask you for the "Percentage from US Treasury Obligations." I am lazy, so I added up all my MM total dividends (based on the respective % that could be exempt) and then determined the percentage against ALL my dividends and entered that here.
Since the Fidelity 1099-DIV already gives me a total, it is basic math or spreadsheet, for each fund with treasury obligations, to multiply the dividends by the appropriate percentage, get a total for that across the funds, divide that by the total dividends reported, and enter that result as the percentage.
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Old 02-15-2024, 09:43 PM   #7
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Originally Posted by jollystomper View Post
Since the Fidelity 1099-DIV already gives me a total, it is basic math or spreadsheet, for each fund with treasury obligations, to multiply the dividends by the appropriate percentage, get a total for that across the funds, divide that by the total dividends reported, and enter that result as the percentage.
That's a great and simple solution.
Thanks for your help and advice.
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