As the brokerage 1099 forms for the 2024 tax year are coming out, here is a quick reminder for those subject to state and/or local income taxes. My vanguard consolidated 1099 shows the vmfxx state tax exempt portion on the final page in the 2024 end notes It says for the vanguard settlement fund (9999100), the u.s Government obligation percentage is 59.87%. State and local tax treatment A portion of these dividends may be exempt from state and/or local tax, depending on where the return is filed
An astute accountant might know to look for the tax savings for all the other mutual funds and bond funds, but they are very unlikely to realize the state tax exemption from the vmfxx fund unless you mention it directly You can find the breakdown for 2023 in this pdf from vanguard For 2023, vmfxx was 49.37% u.s My understanding is that dividends earned from both funds are 100% tax exempt at the federal level and that vmrxx is exempt from 50% of state taxes, provided your state has income taxes I'm having a hard time getting solid information though about vmfxx and state taxes. Vanguard offers six money market funds
The fixed income group offers actively managed investments in u.s
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