A portion of the dividend income from your municipal bond ETF holdings may be exempt from state income tax, depending on your state’s tax laws. Betterment has calculated this for you, based on your state of residence listed within your account. Simply head to the Documents section of your account and then click the Tax Forms tab to download your Supplemental Tax Statement, which will contain this figure.
Please note that while most customers will receive a Supplemental Tax Statement, a small subset of customers will not, due to various holdings that are not generally included in our main portfolio strategies here at Betterment. If you did not receive a Supplemental Tax Statement and you need more help, please email email@example.com.
If you’ve moved and your state of residence on file with us was incorrect, and you wish to calculate your state-specific percentages of your municipal bond ETF holdings, please consult materials from the fund provider. To help, here are some resources below to find more specific information about the holdings of various municipal bond funds which may be used in your portfolio.
Nationwide Municipal Bond ETFs
- TFI: SPDRS Tax Exempt Interest by State
- Go to the “Document” tab.
- Scroll down to the “Tax Documents” section.
- Click on “SPDR ICI Tax Summary (Secondary).”
California State-Specific ETF
New York State-Specific ETF
For TurboTax Users
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.”
From the dropdown, select “More Than One State.”
Example using Supplemental Tax Statement:
For the out-of-state portion of dividend income, choose any state other than your resident state.
TurboTax is a registered trademark of Intuit, Inc.
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Quicken is a registered trademark of Intuit, Inc.
Betterment is not a tax advisor and the information provided should not be construed as tax advice, but should be used for informational purposes only. If you are not comfortable making these calculations, we suggest getting professional tax assistance. Please consult a qualified tax professional or the IRS to determine the rules that apply to your individual tax situation.