2007-03-22 14:22:58 · 4 answers · asked by Wiccanholly 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
Tax exempt dividends are earnings on municipal, city state etc. bonds. The US govt does not tax earnings on state, city bonds; the states do not tax earnings on US savings bonds etc.
Your state may tax these earnings, they have to be added back in some states. Some states exempt all of them, some only those from their own state.
2007-03-22 14:33:15 · answer #1 · answered by irongrama 6 · 3⤊ 1⤋
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RE:
what are tax exempt dividends?
2015-08-10 05:39:35 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Earnings on bonds are tax exempt interest, not dividends. The utility example was excellent.
2007-03-22 17:49:49 · answer #3 · answered by CarVolunteer 6 · 0⤊ 0⤋
They can be a number of things. Can be from a muni bond fund or can be return of capital dividends. Especially normal on Reits & utilities. Means the company paid out more in dividends for the year than they earned.
2007-03-22 17:06:13 · answer #4 · answered by vegas_iwish 5 · 1⤊ 0⤋