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A portion of these dividends may be exempt from state and/or local tax, depending on where the return is filed Vctxx is tax exempt at the federal and state level for residents of california, but what about tax liability for vmfxx I found this ink somewhat useful, but it doesn't indicate tax liability for vmfxx Hi, i am looking at dividends from the vanguard federal mm fund (vmfxx)
Based on this from the ftb Obligations and/or in california or its municipal obligations, that amount of dividend is exempt from california tax. t. 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.
You can find the breakdown for 2023 in this pdf from vanguard For 2023, vmfxx was 49.37% u.s
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