So in 2023, 80% of the interest from the Vanguard Treasury MM would be state tax free in Massachusetts. For some past years, 100% of the interest from the Treasury MM Fund was state tax free. That percentage can change depending on what Treasury or Federal debt instruments are in the Treasury MM fund.I pay MA state tax. I would pay less state tax on the Vanguard Treasury MM Fund? Can that fund be used as my settlement account?Also the Vanguard Treasury MM Fund, which provides a similar interest rate to the Federal MM Fund, has interest that is mostly state tax free. I think about 80% of the interest from the Vanguard Treasury MM Fund was state tax free in 2023.
When you do your taxes, the tax software will ask how much of your interest income was U.S. Treasury interest & would exempt that Treasury interest from your state taxable income.
There are few states, CT being one, that has specific rules for state tax free Treasury interest.
bill
Statistics: Posted by billfromct — Fri May 10, 2024 8:57 am — Replies 13 — Views 575