Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
How the bond mutual fund dividends are taxed?
2 Answers
- Anonymous2 decades agoFavorite Answer
Taxed at ordinary income tax rate in the year it was paid out.
It is taxed whether you reinvest it or not.
However, if this mutual fund was in a qualified retirement account like IRA or Roth IRA, then everything is tax-deferred.
Source(s): 231 - 2 decades ago
The 1st poster is correct. However, the state taxation of the bond may exclude a portion of the dividend income as from "US Treasury Obligations". You will have to get this information from the Fund company.
--
Any tax advice included in this written communication was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed by any governmental taxing authority or agency.
