Personal Finance (Not Investing) • Tax Reporting of VMATX and VGIT Dividends

Considering to buy the following two in Taxable brokerage account. I am a Massachusetts resident.
-- VMATX (Vanguard Massachusetts Tax-Exempt Fund)
-- VGIT (Vanguard Intermediate-Term Treasury ETF)

My understanding is that the dividend from VMATX will be fully tax free for both Federal and MA State taxes, and dividend from VGIT will be taxable for Federal but will be free from state tax. However, I am trying to understand (before I buy these) how the dividend amounts will be reported in Vanguard's 1099-DIV and will everything fall in place automatically when I punch in numbers from 1099-DIV into tax software (I use TurboTax), or do I have to do some additional manual calculations myself to make the dividends tax free for federal and MA state?

I understand there most likely will be capital gains as well reported from the funds that will be taxable for both federal and state; also when I sell them, if I incur gains that will also be taxable. My question above is for tax reporting mechanics of the dividends only.

If someone can help sharing their personal experience and if possible with a small example, that will be a big help.

Thanks.

Statistics: Posted by dkg2707 — Sat Aug 31, 2024 7:21 pm

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