Exempt Interest Dividends

What are Tax Exempt Dividends?

Tax-exempt interest from a mutual fund produces exempt-interest dividends when paid to the shareholder.

Are Exempt Interest Dividends Taxed?

Exempt interest dividends from mutual funds aren’t taxable, but you should report them on your return if you’re required to file. Dividends exempt from interest might be subject to Alternative Minimum Tax (AMT).

How Are Exempt Interest Dividends Reported?

Exempt interest dividends are reported to a taxpayer on Form 1099-DIV, whether or not it’s subject to AMT.

More Help with Taxable and Tax Exempt Interest Dividends

Don’t do it alone! For guidance on who pays interest dividends—and how much—contact a tax pro at H&R Block. Find a tax office location nearest you now!