Treasuries & Taxes

[fritzo489]

I was wondering if an investor has to own the T-bill or Note in order to not pay STATE tax on the interest ? 

I sold 3 target date funds & I'm thinking I can forgo STATE taxes on the interest from these 3 TDF's, based on percentage of Treasury interest paid from all interest paid .

                                                                           Thanks for any help, fritzo489

[yogibearbull]

It depends on states. Some states require majority of distributions to be from Treasuries and/or munis; other states don't care.

[fritzo489]

yogibearbull,  Thanks I'll see if I can find that info concerning % of distribution.

[marpro]

Feb 18, 2023 1:58:29 GMT fritzo489 said:

I was wondering if an investor has to own the T-bill or Note in order to not pay STATE tax on the interest ? 

I sold 3 target date funds & I'm thinking I can forgo STATE taxes on the interest from these 3 TDF's, based on percentage of Treasury interest paid from all interest paid .

                                                                           Thanks for any help, fritzo489

Move to Tennessee, or similar state with no state income tax. You will not need to worry about state tax or even wealth tax. But, unfortunately, Nashville has become very expensive. The real estate has boomed there. So, it would not work well.