Fidelity money market - government obligations for 2024

[sengsational]

And when you enter the data from the 1099-DIV in HRBlock (and probably TurboTax) you click the checkbox to specify government obligations (in the Federal tax section). It says it doesn't affect Federal taxes, but is sent to the state return. And it did do that.

In my case, one account had dividends mostly from SPAXX, but a little from an ETF position. I just weighted down the percentage...I guess that's what you're supposed to do [0.5509*(SPAXX dividend$)/(total dividend$)]

 

[imjustawarrior]

[0.5509*(SPAXX dividend$)/(total dividend$)]

Why do you divide by total dividend $? TT asks for a dollar amount. What is HRB looking for?

I do something like this:

0.5508*(SPAXX total dividend) + 0.0904*(MYETF total dividend) = dollar amount from gov obligations

I don't do any dividing.

 

[JoeWras]

Why do you divide by total dividend $? TT asks for a dollar amount. What is HRB looking for?

I do something like this:

0.5508*(SPAXX total dividend) + 0.0904*(MYETF total dividend) = dollar amount from gov obligations

I don't do any dividing.

Me too.

 

[Lztaas]

Sorry for dumb question but what is MYETF?

 

[imjustawarrior]

Sorry for dumb question but what is MYETF?

Something I made up. It could be any ticker.

 

[sengsational]

Why do you divide by total dividend $? TT asks for a dollar amount. What is HRB looking for?

I do something like this:

0.5508*(SPAXX total dividend) + 0.0904*(MYETF total dividend) = dollar amount from gov obligations

I don't do any dividing.

Ok, your result was dollar amount from government obligations. Is that what your tax software asks for? That's not what HRBlock asks for. It asks for the percentage of this 1099 that is from government obligations, not a dollar value.

 

[JoeWras]

Ok, your result was dollar amount from government obligations. Is that what your tax software asks for? That's not what HRBlock asks for. It asks for the percentage of this 1099 that is from government obligations, not a dollar value.

Ah, I see. TurboTax asks for bucks.

 

[Wupot2020]

Yeah, that info is definitely not on my 1099. Would be nice if it was.

It’s disappointing that some companies include this information on their 1099s and others do not. EJ has always included government obligations but Schwab does not.

 

[sengsational]

I wonder how many people don't know to do the math and give up the state income tax advantage. I bet there's a good fraction of filers that import their 1099's, it doesn't do a complete job, but implies it does, and the states laugh all the way to the treasury.

 

[imjustawarrior]

I wonder how many people don't know to do the math and give up the state income tax advantage. I bet there's a good fraction of filers that import their 1099's, it doesn't do a complete job, but implies it does, and the states laugh all the way to the treasury.

I guess this is one more reason to avoid cash, especially in a taxable account.

 

[jollystomper]

The individual investor version of the Fidelity percentage income from U.S. obligations is now available: http://www.fidelity.com/bin-public/...documents/taxes/TY24GSESupplementalLetter.pdf

 

[JoeWras]

Thanks for the heads up.

 

[joesxm3]

I was being lazy and asked Grok what percentage of income from government securities is necessary for a fund to be exempt from CT state tax.

It replied that I asked the wrong question. It said that while you use the percentage of income to calculate how much is taxable, the CT statutes state that to qualify 50% of its assets at the end of each quarter must be government obligations.

So it seems that while SPAXX has more than 50% of its income from government it may still be subject to state tax. The web site shows 38.6% treasuries. There is about 28% agency but I don't think that counts. I am pretty sure that the 36.43% government repurchase agreements don't count.

 

[JoeWras]

Repurchase agreements do not count. And that's been the problem the last 3 years.