XYZ corporation pays dividends of $500. . 17% 3. Consistent with Utah law, these factors. Investors may need to pay taxes at the state. The qualified dividend tax rate increases to 15% for taxable income above. g. to the extent includable in gross income for federal income tax purposes, but exempt from state income taxes under the. State/Jurisdiction BlackRock Allocation. 77% Intermediate Tax-Exempt 7. Curated by experts. State . Free Military tax filing discount. 01% 5. 00% Arkansas 0. However, there are some states (NY, CT, and CA) that have an “asset test” which requires 50% of the fund’s assets to be U. Use Form 2555 to claim the Foreign Earned-Income Exclusion (FEIE), which allows those who qualify to exclude some or all. Once each month, SGOV distributes a dividend, after which the share price of SGOV goes back down to ~$100. 25% fee but higher than Fidelity Go’s rate of 0% (for accounts above $50,000) or Wealthsimple’s fee of 0. REITs. Sometimes I get so confused I get a mental block even if it's right in front of me. FreeTaxUSA and Wealthfront: State Tax-Exempt Dividends. If you owned shares of any of the Fidelity funds listed in the table on the following pages of this letter during 2020, a portion of the tax-exempt interest dividend income you earned may be exempt from your state’s income tax. 4. The capital gains rate is often lower than the tax rate on non-qualified or ordinary dividends. 53% + GUA 0% + PR 0% + VI. If you are importing a 1099-DIV and Box 11 (Exempt Interest Dividends) is not $0, TurboTax will show you a screen which asks: “Choose the state where your tax-exempt dividends came from. PDF. In addition, some states have. In the dropdown, select your state and enter an amount. 2023. You can switch to the site for: Institutional Investors or Global Investors. 62 Nebraska 0. Ordinary dividends are taxed at the. 2023. S. Fund would calculate the portion of ordinary dividends that may be exempt from state income or investment tax. TAX-EXEMPT FUNDS % AMT Arizona Tax-Exempt 1. Fidelity reports to the IRS and applicable shareholders on Form 1099-DIV exempt-interest dividends distributed from mutual funds. After importing your data, you may be prompted by TurboTax to “Tell Us More About Your Exempt Dividends. 3%, New York 8. S. In most states, fund dividends from interest on direct U. TurboTax Self-employed & investor taxes. Burton G. The question and examples provided by sam-ehrlichman in the above message state that tax exempt interest is in box 10. 30%. You can find the state on more detailed info sent from your financial provider. Use our interactive worksheets to figure out how much of the dividend income distributed by funds you own may be subject to federal and state income taxes. Federally Tax-Exempt Dividends from Mutual Funds Investing in Bonds of Another State. We buy and sell funds, rebalance your portfolio, and reinvest dividends to keep you diversified and fully invested. Please consult a tax advisor to determine whether your state allows a tax exemption for that portion of exempt-interest dividends attributable to your state. TurboTax Live tax expert products. government securities" (shown below in Column 1) by the amount for that fund in Box 1a of your Form 1099-DIV. 3%, Illinois 7. Hi, I decided to try FreeTaxUSA this year and this question has me stumped. For an account with an average monthly balance of $100,000, your monthly advisory fee is $18. Dividends are distributions of property a corporation may pay you if you own stock in that corporation. Alaska 0. 5K subscribers in the wealthfront community. Sometimes I get so confused I get a mental block even if it's right in front of me. 4% state), applicable to Wealthfront’s median client weighted by assets. TurboTax Live tax expert products. Series 480. g. 63 Arizona 1. Edit: VUSXX is no longer 100% state tax free. The amount of municipal bond interest from your state, Puerto Rico, the Virgin Islands, and Guam can be calculated by multiplying the total interest dividend you received from a fund (reported as tax-exempt interest on Form 1099-DIV) by the appropriate percentage of interest received from your state, Puerto Rico, the Virgin Islands, and Guam. In most cases, that would be mutual funds composed of municipal bond investments. only the portion of fund income dividends earned from the shareholder’s state of residence (and from U. In this example, it shows that the national tax-exempt fund has the highest after-tax yield, although not by much over the Treasury money market fund (3. when distributed as a dividend from a mutual fund, and Section265 of the Internal Revenue Code (IRC), which disallows a deduction for expenses allocable to tax-exempt income. If you received a Form 1099‑DIV, your tax‑exempt dividends will appear in Box on the form and the. Reviewed in: Oct. 00% California 0. 202301-2680138. In this example, $29. 75% 1. TurboTax online guarantees. 75 Florida 5. In addition, the amount listed as "Exempt interest" in Box 11 of Form 1099-DIV would not be from U. , taxable or nontaxable) or holding period. Box 14-16 are used to report state information. A portion of these dividends may be exempt from state and/or local tax, depending on where you file your return. California, Connecticut, and New York exempt dividend income only when a mutual fund has met a. Note: Tax rates include both federal and state tax rates and are based on the typical tax bracket of Wealthfront clients. Portion of total ordinary dividends . This amount will carry to the payments section of Form 1040. Government interest portion of a fund dividend income is exempt from state and local income taxes. Federally tax-exempt income dividends Calculate how much of a fund’s federally tax-exempt income dividends can be excluded from your state taxable income. ”. When your account with US Direct Indexing approaches $500,000, you will automatically. You can find the state on more detailed info sent from your financial provider. How do I address “exempt-interest dividends” in my tax return or tax software? Cost basis and sale proceeds amount on Form 1099 How do I change the tax year for an IRA. If the mutual fund satisfies the 50% plus criterion, you check that box and enter US govt. You can select More than one state and continue if you: - Live in a state with no income tax (AK, FL, NV, SD, WA, WY) - Live where. I'll go ahead and link that below for those who may be unaware. This past year Wealthfront lowered the minimum account balance required to take advantage of Stock-level Tax-Loss Harvesting to $100,000. It also assumes a combined federal and state marginal tax rate of 20. Information for state tax reporting This information may help you prepare your state income tax return. This is the date by which you must either file your taxes or Form 4686 to get a tax extension. the TIAA‑CREF 5‑15 Year Laddered Tax‑Exempt Bond Fund. Many revenue bonds with stable and growing sources of revenue sell at quite attractive yields relative to U. 20% 30-day blended SEC yield (after fees, with total returns from March 30, 2023 – November 7, 2023 of 2. ” ★ How do I address “Foreign tax paid” and "Foreign income" in my tax return or tax software? ★ How do I address “exempt-interest dividends” in my tax return or tax software? ★ Cost basis and sale proceeds amount on Form 1099 For the state-specific funds, income dividends will generally be substantially exempt from federal and local income taxes for a resident of that state. 75% = $87. your 2022 Federal and State tax returns. “After-tax dollars” means that, unlike a Traditional IRA, you can’t deduct your contributions. It is tedious. If shareholders received a taxable capital gain distribution, that information is also reported on Form 1099-DIV. Occasionally, some of the companies we purchase in your. 00% APY on your uninvested cash, get a portfolio of higher-yield bond ETFs, and diversify for the long term with automated investing. m. 2019 Open-End Funds Tax Supplement: Get income by state, tax-exempt income and other fund-specific tax information; 2019 Closed-End Funds Tax Supplement;Description. If any holder (individual, fund or otherwise) purchases such a qualified municipal obligation on the sec ondary market at a discount to Here are eight ways you can get ready for Tax Day, whether you’re working with an accountant or using tax preparation software like TurboTax. Earn 5. The effectiveness of the Tax-Loss Harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront Advisers and type of investments (e. US Direct Indexing is available for taxable accounts of at least $100,000, and once your account balance reaches. If the tax-exempt dividends come from a bond fund, usually the fund administrator includes a list of states in the materials that accompany the 1099-DIV form. Reinvests dividends to rebalance your portfolio. You are on the site for: Financial Professionals and Individual Investors. 09% 0. For example if you had $100 in exempt-interest dividends and your sheet says 10% exempt in your state, enter $10 (10% x $100). Generally, the U. This value represents dividends received from ETFs like MUB, which hold a. In the risk score 8 portfolio (one of our most commonly-chosen. S. 36 North Carolina 1. The issue for Colorado/non-Colorado tax-exempt interest seems to be a new issue this year and is presumably a bug. Invest in stocks, mutual funds, and EFTs within a Roth IRA or Roth 401(k). To determine the portion of dividends that may be exempt from your state income tax, multiply the amount of “ordinary dividends” reported in Box 1a of Form 1099-DIV by the percentage listed in the following table. You also won't pay state taxes on income from dividends or interest in South Dakota. Interest or dividends on obligations of the United States and on obligations or securities of any authority, commission or instrumentality of the United States to the extent exempt from state income taxes under the laws of the United. TurboTax en español. If your 1099-DIV shows an amount for a particular fund. Income Tax. State tax laws change over time. This includes information such as dividends and capital gains received during the year. 90 was exempt from state and local income taxes. Wealthfront portfolios have a major advantage over those offered by other robo-advisors. 6D reports any tax exempt dividends that were distributed in your taxable investment account. Rowe Price tax-free fund investments. In addition, the amount listed as "Exempt interest" in Box 11 of Form 1099-DIV would not be from U. I always keep hoping they will fix that. I am looking to find the data for my state taxes, and Wealthfront has been trading in iShares muni bond ETFs, and SPDR Nuveen Bloomberg Barclays Municipal. For cash accounts that generate more than $10 of interest or received $600 or more in awards, we'll post a tax form 1099. 00 Texas 11. 02% 0. Box 13 is used to report exempt-interest dividends subject to the alternative minimum tax. Percent Percent Subject Tax- Subject to to Federal Exempt Alternative Fund Income Tax Percentage Minimum Tax California Municipal Bond Fund (EVM) 5. Tax-exempt interest dividends by state for 2015 State Tax-Exempt Money Market Fund Short-Term Tax-Exempt Fund Limited-Term Tax-Exempt Intermediate-Term Tax-Exempt Fund Long-Term Tax- High-Yield Tax- Tax-Managed Balanced Fund Tax-Exempt Bond Index Alabama 0. 10763-65. If half of your Social Security benefit plus other income, including tax-exempt muni bond interest, is between $32,000 and $44,000 for a joint tax return ($25,000 to $34,000 for single filers), up to 50% of your Social Security benefits may be taxable. S. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling toll free 877-910-4232. However, there are some states (NY, CT, and CA) that have an “asset test” which requires 50% of the fund’s assets to be U. When you explore qualified vs. You can find tax-exempt interest and dividends information in your 1099 form, on the page that says “Mutual Fund and UIT Supplemental. But its possible you can get a tax benefit on your state return if you can identify which state the dividends. State income tax can vary widely across states. State tax withheld $ $ Form . In the dropdown, select your state and enter an amount. 53 Georgia 1. Box 14-16 are used to report state information. On the following pages, you will notice funds marked with an asterisk (*). 13. On the reverse side, you’ll find the percentage earned in each state or U. Form 8949 is for the sales and dispositions of capital assets, such as stocks, bonds and mutual funds. ago. They are exempt from federal taxes. 10% 0. Tax-exempt interest dividends by state 1. calendar year. Thrivent Municipal Bond Fund information by state for 2022. For instance, New Hampshire’s 5% tax on dividends and interest is due to be phased out by January 2027. 5K subscribers in the wealthfront community. Taxes differ based on income level, per state, and even for circumstances such as how long a stock has been held then sold (short term vs. If any federal tax was withheld in box 4, enter this amount here. ” The effectiveness of the Tax-Loss Harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront Advisers and type of investments (e. Wealthfront’s Automated Bond Portfolio is designed to earn a higher yield than our Cash Account with less risk than investing in equities, via a diversified lower-risk, higher-yield portfolio of bond ETFs. By waiting until around February 15th, we ensure that the most recent investment information is captured in your. Government bonds to qualify for a percentage of the fund’s income to be exempt from state and. Check I earned tax-exempt dividends in more than one state. , taxable or nontaxable) or holding. Although the income dividends paid by RVNU are derived from tax-exempt interest income that is generally exempt from U. Your portion of the exempt interest income has been included on your Form 1099-DIV. If the underlying municipal bonds in the ETF are exclusively from the state an investor resides in, their dividends are usually exempt from state tax in addition to federal tax exemption. Tax-exempt. Tax Information for Tax-Free Funds: state and federal tax reporting requirements for your T. From a tax perspective, 2015 was an unprecedented year of tax savings for Wealthfront clients who took advantage of our Daily Tax-Loss Harvesting and Stock-level Tax-Loss Harvesting services. for 2017, anyway. In other words, these dividends, when so entered into TurboTax and thus onto your actual tax return, are federal tax-exempt income. In accordance with IRS requirements, your tax-exempt income will be reported to you on Form 1099-DIV. e. Current Tax Rate is the combined federal + state tax rate applicable to the. 6A reports any taxable dividends and/or gross proceeds from realized capital gains or losses in your taxable investment account. This is the date by which you must either file your tax return or Form 4868 to get a tax extension. The forms they give you are super complicated and small print. TurboTax Live Premium. TurboTax Live Premium. TurboTax Live Premium. TurboTax Self-employed & investor taxes. 4. • 4 yr. Period considered: Aug. *If you signed up prior to April 1, 2018, you will receive your first $10,000 managed for free. ) TurboTax only imports state exempt interest from Federal and it appears to be a non-editable amount. Percent Percent Subject Tax- Subject to to Federal Exempt Alternative Fund Income Tax Percentage Minimum Tax California Municipal Bond Fund (EVM) 3. The effectiveness of the Tax-Loss Harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront Advisers and type of investments (e. For background, the vanguard municipal fund consists of bonds from states across the nation. ”. For high-income. Individual taxpayers can exclude 100% of their federally tax-exempt income dividends related to fund shares acquired prior to January 1, 2012. For any other. 93% 2. TurboTax Live Premium. It is designated as such in a written notice that is mailed to the company’s shareholders within 45 days after the end of the taxable year. Wealthfront claims that this feature adds 1. In most states, fund dividends from interest on direct U. The effectiveness of the Tax-Loss Harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront Advisers and type of investments (e. 66%. 00% 0. Nonqualified dividends are taxed as income at rates up to 37% in 2023. 3% California State income tax rate. We assume a combined ordinary income tax rate of 30. ETO Tax-Advantaged Global Dividend Opportunities Fund; EADIX Tax-Managed Global Dividend Income Fund (A) CSVIX Calvert Small-Cap Fund (I). We then applied the tax rates in Table 2 to the two components of return to calculate each asset class’s after-tax return. S. Client acknowledges that the Wealthfront Advisers and Wealthfront Brokerage are subject to certain anti-money laundering (“AML”) and related provisions under applicable laws, rules, and regulations and areWithdrawals are also tax-free. Vanguard funds that are eligible for the foreign tax credit (PDF) If you own a fund that includes foreign investments, the fund may have paid foreign taxes on the income, which is passed to you as a credit. Expense ratio (0. (TSB-M-79-(14)-I) Previously. Series 480. Foreign country or U. Here's a direct shot to the XLS file for 2017. Any federally tax-exempt income dividends you received from the funds in 2022 are subject to special state income tax considerations. S. Qualified dividends get entered on Line 3a of the same form. (. For any IRAs (Traditional, Roth, or. 1099-INT for non-Colorado tax-exempt interest (taxable on the Colorado return) The need to split 1099s for the accrued interest issue is documented and has been that way for years. CONTINUED-2-National Limited National High Yield AMT-Free Maturity Municipal State / Municipal Municipal Municipal Municipal Opportunities Territory Income Fund Income Fund Income Fund Income Fund Fund New Jersey 3. 7. Erin. It also lists any portion of those payments that is classified as specified private activity bond interest. Erin. The amount in this box reduces your federal tax liability and should be claimed on IRS Form 1040. 1-322 C provides a subtraction, to the extent included in federal adjusted gross income, for: 1. Municipal bonds are issued by state and local governments, not the US government. Federal income tax, for state income tax purposes,. State Tax Exemptions for State and National Funds If you own a state-specific municipal bond fund and reside in that state, exempt-interest dividends paid by the fund may be exempt from both regular federal and state income taxes. use Copy 1 to provide information to the state tax department. We buy and sell funds, rebalance your portfolio, and. Exempt-interest dividends are usually interest payments on state or municipal bonds. mutual fund or other RIC paid to you during the. Enter any interest or dividend income received by a non-Ohio state government, if the interest and/or dividends is not included in your federal AGI. The Bottom Line. S. 75% = $87. TurboTax Live Deluxe Full Service. 7% for a married couple who jointly earn an annual income of $260,000 (the average Wealthfront married couple client) and live in Pennsylvania. Most managers charge you 4x more, around 1%. For example if you had $100 in exempt-interest dividends and your sheet says 10% exempt in your state, enter $10 (10% x $100). On the following pages, you will notice funds marked with an asterisk (*). The amount of municipal bond interest from your state, Puerto Rico, the Virgin Islands, and Guam can be calculated by multiplying the total interest dividend you received from a fund (reported as tax-exempt interest on Form 1099-DIV) by the appropriate percentage of interest received from your state, Puerto Rico, the Virgin Islands, and Guam. Dividends earned by nonresidents are typically subjected to a tax rate of 30%. So, for example, if a trust earns $10,000 in income during 2023, it would pay the following. , if there are insufficient realized gains in the tax period, the use of harvested losses may be limited to a $3,000 deduction. For Utah residents, 20% of the dividends. TurboTax Live Deluxe Full Service. Treasuries. If you have questions, we recommend you contact your tax advisor, the IRS at 1-800-829-1040, orPlease consult your tax advisor regarding the tax status of Fund distributions in your state. The majority of states have a homestead property tax exemption that allows you to protect a certain amount of the value of your primary property from taxes. In a taxable account, the "excess reportable income" amounts you need for a tax return are in USD. Federal tax treatment. 8. State municipal funds that have interest income derived only from in-state obligations. 15% 1. (It should go on Schedule M, Line 22. However, dividends that represent payments from otherwise federally tax-exempt entities (but from those outside of the state of New. Va. This means investors do not have to pay federal income tax on the income they receive from these investments. If any federal tax was withheld in box 4, enter this amount here. Municipal bonds, which are bonds issued by state and local governments, are typically exempt from federal income tax. STATE TAX INFORMATION We suggest that you contact your tax adviser for assistance in determining the tax treatment of the tax-exempt dividends in your state. For example if you had $100 in. Vote. TurboTax Self-employed & investor taxes. • Box 13 Specified private activity bond interest dividends • Box 14 State • Box 15 State identification no. Important Alternative Minimum Tax Information: The percentage of your total 2022 exempt-interest dividends subject to the Alternative Minimum Tax (“AMT”) is shown on the line “Amount Subject to AMT” at the bottom of the “Tax-Exempt Income by. Wealthfront uses more than one program bank to ensure FDIC coverage of up to $8 million for your. Tax law & stimulus updates. g. To open a basic account with Wealthfront, investors need $500. For individual, joint, and trust Automated and Stock Investing Accounts, you will receive a Consolidated Form 1099 including details of dividends paid (Form 1099. government securities are exempt from state and local taxes. 72% 5. S. 17. Corporations which receive tax-exempt. 2% of $1000 = $20, so I break down box 11 as NC. For 2019, the long-term capital gains tax rates are 0%, 15%, and 20% for most taxpayers. companies registered for Turnover Tax) where the dividend does. 4. Federally tax-exempt income dividends Calculate how much of a fund’s federally tax-exempt income dividends can be excluded from your state taxable income. 25; %, which is on par with competitor Betterment’s 0. S. Found a good answer from WealthFront: Because the underlying bonds that result in. Foreign country or U. Invest in tax-exempt accounts. It seems clear, however, that qualified dividends are indeed a subset of ordinary dividends (“Qualified dividends are the ordinary dividends that are subject to the same 5% or 15% maximum tax rate that applies to net capital gains” (IRS Publication 550 (for 2004 Returns), p. There are links to most-recent-year tax info XLS and XLSX files at the SPDR page for all of their ETFs, found under the "Related Documents" tab at each ETFs' product page. 7% annual rate of return (the pre-tax, net of fee annual returns Wealthfront’s risk-score 8 tax-advantaged and taxable investment accounts have generated since late 2011). Tax forms included with TurboTax. Some states require a minimum percentage of home state bonds to permit the state tax exemption. You’d multiply those percentages by your total dividends from the fund to calculate dollar amounts from each state. 20%. The effectiveness of the Tax-Loss Harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront Advisers and type of investments (e. 79% in 2022. 85% interest/monthly dividend payouts but with a 0. That line reads, "Income (interest dividends or gains) received while a. The Annual Percentage Yield (APY) for the Cash Account may. Washington's estate tax exemption is. 14% ALTERNATIVE MINIMUM TAX The Tax Reform Act. 4% (24% federal + 6. Wealthfront is designed to build wealth over time. Rowe Price tax-free fund investments. Managed automatically. In the dropdown, select your state and enter an amount. Though interest on these bonds is taxable, they often offer higher. S. mutual fund or other RIC paid to you during the. Portion of total ordinary dividends that may be state tax–exempt . Use Form 1116 to claim the Foreign Tax Credit (FTC) and subtract the taxes they paid to another country from whatever they owe the IRS. Although state tax laws differ, many states do not tax interest on the bonds they issue or on interest from municipal bonds issued within the same state. The effectiveness of the Tax-Loss Harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront Advisers and type of investments (e. 24 Kansas 0. They will typically tell you in percentages, like California 12. The securities are listed in order of their CUSIP number, and the tax-exempt payments are listed by payment date, in chronological order. STATE TAX INFORMATION We suggest that you contact your tax adviser for assistance in determining the tax treatment of the tax-exempt dividends in your state. Portion of total ordinary dividends that may be state tax–exempt . 8 to 104. 14 Nevada 1. While still exempt from Federal Income Tax, such amounts will be reported to the Internal Revenue Service. territories and possessions can be excluded. We recommend you consult your tax advisor for assistance with how this information will impact your specific tax situation. 2019 / This material is provided for educational purposes only and does not constitute investment advice. 019. DISCUSSIONIt’s taxed at normal tax rates for federal income tax but it’s still exempt from state and local taxes. Your broker may charge an fx fee to convert those to GBP. In the dropdown, select your state and enter an amount. In most cases, dividend income is taxable. Malkiel • March 05, 2013. IRS form 1099-DIV helps. , taxable or nontaxable) or holding. The former is taxed at the capital gains rate . You’ll need the amount reported to you in Box 13 of Form. Wealthfront Advisers LLC cut its stake in shares of Vanguard Tax-Exempt Bond ETF (NYSEARCA:VTEB – Free Report) by 8. 1 At least 50% of this fund's assets at the end of each quarter consist of California obligations. 75% 6. In this example, $93. Follow. Today I am excited to announce the first significant improvements to Wealthfront’s investment service since I joined the company as chief investment officer. 13% pre-tax). TurboTax Live tax expert products. Hi, I decided to try FreeTaxUSA this year and this question has me stumped. Updated. You would be able to deduct the full $80 of investment interest if you itemize. Account is for long-term, about 10-20 yrs out. 06 Louisiana 0. Check the specific requirements for your state. Territories and U. Government. 49 North Dakota 0. 28% California Intermediate Tax-Exempt 10. The 2019 Form 1099-DIV reports Noncash liquidation distributions in Box 10 and Exempt interest in Box 11. For shares acquired on or after January 1, 2012, only dividends from Indiana sources and dividends from U. Any dividends from a nonprofit organization or other tax-exempt corporation; Dividends paid by a corporation on securities that an employee holds in an employee stock ownership plan maintained by. 34% 5. Therefore, if a dividend from a mutual fund includes the profit or gain from the sale of a Maryland state or local obligation, this gain is excluded from taxation on the Maryland return. The Vanguard Funds you list here are multi-state municipal bond funds. S. The 2019 Form 1099-DIV reports Noncash liquidation distributions in Box 10 and Exempt interest in Box 11. Check I earned tax-exempt dividends in more than one state. Skylar Clarine. 13%)Only one fund issued the tax-exempt $$, and they say the 2% of the tax-exempt $$ came from NC bonds. 1. The bottom line: Wealthfront is a force among robo-advisors, offering a competitive 0. Wealthfront, Wealthfront Advisers, Wealthfront Strategies, and Wealthfront Brokerage are wholly owned subsidiaries of Wealthfront Corporation. When you get to the question, Choose the state where your tax-exempt dividends came from, you should choose More than one state, which is at the bottom of the drop down. Optimized for tax savings For taxable accounts, our Tax-Loss Harvesting strategy finds ways to help save on taxes and maximize your returns. Tax-exempt status can be a good thing, as it can translate to tax savings. interest dividends that may be exempt from state income tax. S. Not only will we handle all the trades for you, but we’ll automatically reinvest your dividends, rebalance your portfolio, and look for regular Tax-Loss Harvesting opportunities, whenever possible. We suggest that you consult your tax advisor, who is most familiar with your circumstances and the laws of the state.