The minimum amount required to open an account is $500. 32% 5. 39. 00 Texas 11. State identification no. I'll go ahead and link that below for those who may be unaware. If such corporate funds are tax-exempt, the dividends paid derived from such funds are, nevertheless, taxable to the shareholders. Details for each dividend received can be found in the Dividend & Distribution Details section towards the end of your Form 1099. That deferred tax liability needs to consider the following components: Withholding tax imposed on the dividend; State tax associated with the dividend; 986 Exchange Gain/LossWe will further assume the tax-advantaged accounts have a 9. In most cases, that would be mutual funds composed of municipal bond investments. In the dropdown, select your state and enter an amount. This information may help you prepare your state income tax return. We would like to show you a description here but the site won’t allow us. The first step in entering your 1099-B on your tax return is to transfer the appropriate information to Form 8949. Box 14-16 are used to report state information. Optimized for tax savings For taxable accounts, our Tax-Loss Harvesting strategy finds ways to help save on taxes and maximize your returns. FDIC insurance is not provided until the funds arrive at the program banks. Senate Bill 588 (Chapter 165, Acts of 2001), entitled “Maryland Health andQualified dividend: Taxed at the long-term capital gains rate, which is 0%, 15% or 20%, depending on an investor's income level. A simple tax return is one that's filed using IRS Form 1040 only, without having to attach any forms or schedules. In the risk score 8 portfolio (one of our most commonly-chosen. Tax Information for Tax-Free Funds: state and federal tax reporting requirements for your T. 25%) This is our annual fee for managing your account. The Vanguard Funds you list here are multi-state municipal bond funds. 00% 0. You can view our 529 fee details here. Our Take. Deluxe to maximize tax deductions. $1,000 X 8. companies registered for Turnover Tax) where the dividend does. I believe that the majority of income from SGOV is subject to Federal taxes, but is exempt from State taxes (CA). Dividends. Dividends exempt from interest might be subject to Alternative Minimum Tax (AMT). g. 15% capital gains rate, and 9. The 5. Most states that have an income tax do not tax withdrawals used to pay qualified higher education expenses. 57% versus 3. Account minimums for Wealthfront exclusives (the Risk Parity Fund, US Direct Indexing, and Smart Beta) To invest in US Direct Indexing (formerly known as Stock-level Tax-Loss Harvesting) you’ll need to deposit at least $100,000 in your account. Wealthfront's FAQ appears geared towards Turbo Tax users. Exempt-interest dividends $ 13 . TurboTax Live tax expert products. 12 Georgia 2. If you hold your equity for longer than a year, you can benefit from a reduced tax rate on your profit when you sell it. The following table shows the earnings from each state’s municipal bonds as a percentage of the total tax-exempt distributions paid by the fund. In addition, the amount listed as "Exempt interest" in Box 11 of Form 1099-DIV would not be from U. 3% on their new cash savings account so got excited and opened up an account and put in $1,000. The tax status of a capital gain distribution is determined by how long the mutual fund held the underlying security that was sold, not by how long you have been invested in the fund. FreeTaxUSA and Wealthfront: State Tax-Exempt Dividends. Percent Percent Subject Tax- Subject to to Federal Exempt Alternative Fund Income Tax Percentage Minimum Tax California Municipal Bond Fund (EVM) 5. Miscellaneous information details 17 . 7% versus a combined marginal state and federal short-term tax rate of 42. S. Wealthfront uses more than one program bank to ensure FDIC coverage of up to $8 million for your. If 95% or greater of federally tax-exempt dividends are from a mutual fund and are bonds issued in Minnesota, include the portion of the dividend only generated by non-Minnesota bonds. The 2019 Form 1099-DIV reports Noncash liquidation distributions in Box 10 and Exempt interest in Box 11. 00% District Of. Federal Income Tax Withheld- Box 4 shows backup withholding. e. This means investors do not have to pay federal income tax on the income they receive from these investments. 28% New Mexico 0. 05 Florida 3. Boxes 11 and 12 – Box 11 shows the number of tax-exempt dividends you have received. CMF: iShares Tax-Exempt Interest by State; New York State-Specific ETF. 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. Please consult your tax advisor for further assistance. Here are seven of the best tax-free municipal bond funds to buy in 2023: Fund. In addition, state taxation of retirement benefits is a moving target. For IRA portfolios, the improvement is even larger, with carbon intensity decreasing by over 50% on average. Today, we’re excited to announce an improvement to our investing product: we are updating three of the alternate ETFs Wealthfront uses to conduct Tax-Loss Harvesting. State tax withheld $ $ Form . 11% expense ratio which. government securities are exempt from state and local taxes. 25%. mutual fund or other RIC paid to you during the. government securities . State municipal funds that have interest income derived only from in-state obligations. 51 Tennessee 0. However, starting with dividends re-ceived in 2003, the. , taxable or nontaxable) or holding. Say you had $10 in total interest income from this fund. For individual, joint, and trust Cash Accounts, you will receive a 1099 tax form if your cash account generated more than $10 of interest in the previous calendar year or received $600 or more in awards. We would like to show you a description here but the site won’t allow us. S. 25%) This is our annual fee for managing your account. Taxes on interest: If your investment. However, we hope that it will help you better organize and understand the portion of your income tax return that involves your Invesco closed-end investments. 09%. 71%. TurboTax security and fraud protection. 59% Tax-Advantaged Ultra-Short Fixed Income 6. 30 Ohio. We recommend you consult your tax advisor for assistance with how this information will impact your specific tax situation. Interest or dividends on obligations of the United States and on obligations or securities of any authority, commission or instrumentality of the United States to the extent exempt from state income taxes under the laws of the United. Level 9. The fraction of distributions subject to qualified dividend treatment is estimated based on historical data. percentage of your fund’s tax-exempt income by state is outlined in the table on page three. of this example, assume that the investor had a federal tax-exempt dividend of $1,000. This amount is included in box 11. However, the dividends from the treasury fund (VUSXX) is tax exempt at the state level, and the dividends from my municipal funds (VCADX) is tax exempt at levels of federal and state. Income Tax Fact Sheet 5, Military Personnel. We suggest that you consult your tax advisor, who is most familiar with your circumstances and the laws of the state. Check I earned tax-exempt dividends in more than one state. After importing your data, you may be prompted by TurboTax to “Tell Us More About Your Exempt Dividends. Any dividends earned in these accounts are tax-free, as long as you obey the withdrawal rules. Rowe Price tax-free fund investments. Therefore, if a dividend from a mutual fund includes the profit or gain from the sale of a Maryland state or local obligation, this gain is excluded from taxation on the Maryland return. 1. 11. Was this article helpful?Alabama taxes on retirees. ” ★ How do I address “Foreign tax paid” and "Foreign income" in my tax return or tax software? ★ How do I address “exempt-interest dividends” in my tax return or tax software? ★ Cost basis and sale proceeds amount on Form 1099 For the state-specific funds, income dividends will generally be substantially exempt from federal and local income taxes for a resident of that state. TurboTax Live Premium. 60% Colorado 4. 63 Arizona 1. territories and possessions can be excluded. Dividends and qualified dividend distributions details 17 . Employees that want to claim exempt from Minnesota income tax must use the following form: Form W-4MN, Minnesota Withholding Allowance/Exemption Certificate. ”. , taxable or nontaxable) or holding. 39%The portion of dividends paid by your fund that is derived from U. 0025 * (30/365)). 20%. 65 Maine 0. You are on the site for: Financial Professionals and Individual Investors. FreeTaxUSA and Wealthfront: State Tax-Exempt. ” The effectiveness of the Tax-Loss Harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront Advisers and type of investments (e. Additionally, Wealthfront Advisers or its affiliates do not provide tax advice and investors are encouraged to consult with their personal tax advisors. All dividends are taxed as ordinary income. 1 At least 50% of this fund's assets at the end of each quarter consist of California obligations. Wealthfront. Thus, the savings from this capability can be quite substantial. 00% Arizona 0. alternative minimum tax. I can't figure out where to find this information in my forms I downloaded from WF. Exempt-interest dividend refers to any dividend or part of it that a regulated investment company pays that is not subject to tax. For more information on FDIC insurance. 8787. An alternative would be to track your dividends manually and withdraw that much per month/quarter/whatever. But with us, there are only two costs: Advisory fee (0. TurboTax Live Full Service Business Taxes. only the portion of fund income dividends earned from the shareholder’s state of residence (and from U. FDIC insurance is not provided until the funds arrive at the program banks. The prospectus should be read carefully before investing. In the 37% tax bracket, your qualified dividends are taxed at 20%. CST. Series 480. For shares acquired on or after January 1, 2012, only dividends from Indiana sources and dividends from U. 00% California 11. If you owned shares of any of the Fidelity funds listed in the table on the following pages of this letter during 2021, a portion of the tax-exempt interest dividend income you earned may be exempt from your state’s income tax. This strategy takes a quality-oriented approach to tax-exempt investing, with a focus on investment-grade securities. Today I am excited to announce the first significant improvements to Wealthfront’s investment service since I joined the company as chief investment officer. I receive dividends from mutual funds that invest in Treasuries and TIPS that should be partially tax free in my state (IL). TurboTax Live Full Service Business Taxes. Individual taxpayers can exclude 100% of their federally tax-exempt income dividends related to fund shares acquired prior to January 1, 2012. Vanguard publishes at the end of every year what percentages of dividends for a particular fund for that year, was from federal. In Box 14, enter the state abbreviation, in Box 15 enter the payer’s state ID number. The information contained herein is based on current tax laws, which may . The states and U. Find information to assist you in meeting state and federal tax reporting requirements for your T. 93% 2. California, Connecticut, and New York exempt dividend income only when a mutual fund has met a. The effectiveness of the tax-loss harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront and type of investments (e. Line 133 is for TFI. Email us. The effectiveness of the Tax-Loss Harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront Advisers and type of investments (e. Wealthfront uses more than one program bank to ensure FDIC coverage of up to $2 million for your cash deposits. It has the flexibility to invest in higher income securities across the ratings spectrum. Here's a direct shot to the XLS file for 2017. For Indiana residents, 15% of the dividends from the Thrivent Municipal Bond Fund are considered tax-exempt for state tax purposes. government securities” (shown below in Column 1) by the amount for that fund in Box 1a of your Form 1099-DIV. The Tax-Exempt Bond Fund of America did not pay any federally tax-exempt income dividends derived from municipal bond interest subject to AMT. This past year Wealthfront lowered the minimum account balance required to take advantage of Stock-level Tax-Loss Harvesting to $100,000. , taxable or nontaxable) or holding. The amount of municipal bond interest from your state, Puerto Rico, the Virgin Islands, and Guam can be calculated by multiplying the total interest dividend you received from a fund (reported as tax-exempt interest on Form 1099-DIV) by the appropriate percentage of interest received from your state, Puerto Rico, the Virgin Islands, and Guam. S. Maybe in the future they'll add recurring withdrawals. TurboTax Live tax expert products. Vanguard funds that are eligible for the foreign tax credit (PDF) If you own a fund that includes foreign investments, the fund may have paid foreign taxes on the income, which is passed to you as a credit. , taxable or nontaxable) or holding. . Further, other states, such as Wisconsin, limit the tax exemption on federally Exempt Interest Dividends to certain specified home state bonds. 4% (24% federal + 6. See Pub. S. In addition, the amount listed as "Exempt interest" in Box 11 of Form 1099-DIV would not be from U. government securities" (shown below in Column 1) by the amount for that fund in Box 1a of your Form 1099-DIV. FATCA filing requirement. In this example, $29. This value represents dividends received from ETFs like MUB, which hold a. The Index is comprised of tax-exempt municipal securities issued by states, cities, counties,. In other words, these dividends, when so entered into TurboTax and thus onto your actual tax return, are federal tax-exempt income. It seems clear, however, that qualified dividends are indeed a subset of ordinary dividends (“Qualified dividends are the ordinary dividends that are subject to the same 5% or 15% maximum tax rate that applies to net capital gains” (IRS Publication 550 (for 2004 Returns), p. You can select More than one state and continue if you: - Live in a state with no income tax (AK, FL, NV, SD, WA, WY) -. derived from New York State obligations, which dividends are exempt from Federal income tax and are not subject to New York State's income tax. . Current Tax Rate is the combined federal + state tax rate applicable to the. Employees must use this form to claim tax-exempt status for any reason by checking the appropriate box. Alternatives include non penalty CDs and T-Bills (especially 4 month). An exempt-interest dividend is a type of dividend that is paid to investors on certain investments, such as municipal bonds or mutual funds, and is exempt from federal income tax. If your 1099-DIV shows an amount for a particular fund. This is what the 1099 DIV looks like for this hypothetical investment couple. The Fund invests primarily in investment-grade securities, the interest from which is excludable from gross income for federal income tax purposes (referred to herein as “tax-exempt securities”). Wealthfront 529 account fees are slightly different. Burton G. 0. Tax-exempt interest income is reported on box 12 of Form 1099-DIV (box 11 in 2021 and prior, or box 10 in 2018 and prior). Territories (from table) Portion of Interest Dividends that may be Exempt from State Income Taxes October $1,000 x 1. Nuveen would be the source for info on what states make up their fund. S. S. TurboTax Live Deluxe Full Service. 5% per year. You might be able to use this credit against taxes on those investments in the U. TurboTax Live Basic Full Service. You can find tax-exempt interest and dividends information in your 1099 form, on the page that says “Mutual Fund and UIT Supplemental Information. The distribution deduction would be $15,000. 62 Oklahoma 0. Wealthfront generates and automatically reinvests dividends, and uses that positive cash flow to rebalance. 4% (24% federal + 6. 8% to a taxable accounts returns, on average. 20. 93%. I receive dividends from mutual funds that invest in Treasuries and TIPS that should be partially tax free in my state (IL). TurboTax Self-employed & investor taxes. TAX-EXEMPT INTEREST DIVIDENDS BY STATE AND US POSSESSIONS. Most managers charge you 4x more, around 1%. Line 133 is for TFI. 37% 6. You can find tax-exempt interest and dividends information in your 1099 form, on the page that says “Mutual Fund and UIT Supplemental Information. This question is asking how much of your taxable dividend income is from. 17. 21% 1. State and local tax treatment. Self-employed tax center. PDF. California: The Franchise Tax Board petitioned the California Office of Tax Appeals for rehearing of an opinion addressing whether the entire amount of qualifying. 37% 0. Interest from Treasury bonds is typically exempt from state income tax, so we include more of them for clients in higher. 75% = $87. Federally Tax-Exempt Dividends from Mutual Funds Investing in Bonds of Another State. Follow. Wealthfront is designed to build wealth over time. TurboTax Live Deluxe Full Service. Shareholders of a registered microbusiness (i. Foreign country or U. Dividends are distributions of property a corporation may pay you if you own stock in that corporation. The fraction of distributions subject to qualified dividend treatment is estimated based on historical data. mutual fund or other RIC paid to you during the. ”Which tax documents should I be expecting? You should expect the following: For any taxable investment accounts with dividends or realized gains/losses, we’ll post a Consolidated 1099. ETO Tax-Advantaged Global Dividend Opportunities Fund; EADIX Tax-Managed Global Dividend Income Fund (A) CSVIX Calvert Small-Cap Fund (I). Tax forms included with TurboTax. If a certain fund isn't listed on that document, then it does not have state exempt income. Government bonds to qualify for a percentage of the fund’s income to be exempt from state and. Since our funds are national, you may need to select “More Than One State” when you file your taxes. 00 may be exempt from state tax. Assuming you invest $100,000 over 20 years, the changes could add approximately $28,000 to your. For example if you had $100 total tax-exempt income, $2 would be allocated to your state and $98 to More Than One State for a total of $100. 25%. 7% (per our whitepaper). Once each month, SGOV distributes a dividend, after which the share price of SGOV goes back down to ~$100. 202 3 This material is provided for educational purposes only and does not constitute investment advice. About this Benchmark. 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. Rowe Price Tax-Free Fund investments. Erin. fully tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds. 1. TurboTax will ask you about any dividends that are exempt from interest. The 2019 Form 1099-DIV reports Noncash liquidation distributions in Box 10 and Exempt interest in Box 11. m. , taxable or nontaxable) or holding. ”. 8. Box 12 of the Form 1099-DIV shows your tax-exempt income. Exempt-interest dividends are often associated with mutual funds that invest in municipal bonds. Tax‑exempt interest earned is reportable on Form 1099‑DIV. The securities are listed in order of their CUSIP number, and the tax-exempt payments are listed by payment date, in chronological order. State-taxable dividends often come from mutual funds or Exchange Traded Funds (ETFs) that hold a multi-state portfolio of municipal bonds. In this example, it shows that the national tax-exempt fund has the highest after-tax yield, although not by much over the Treasury money market fund (3. 9 — an average decrease of over 30%. For any IRAs (Traditional, Roth, or. Multi-State Municipal Funds Percentage of Exempt Interest Income Derived. Wealthfront Advisers LLC cut its stake in shares of Vanguard Tax-Exempt Bond ETF (NYSEARCA:VTEB – Free Report) by 8. The amount of municipal bond interest from your state, Puerto Rico, the Virgin Islands, and Guam can be calculated by multiplying the total interest dividend you received from a fund (reported as tax-exempt interest on Form 1099-DIV) by the appropriate percentage of interest received from your state, Puerto Rico, the Virgin Islands, and Guam. These tax rates are usually lower than regular income tax rates. NerdWallet rating. r701-40. If you multiply that $1. 50 . 25; %, which is on par with competitor Betterment’s 0. From franchise tax board, California government website: California does not have a lower rate for qualified dividends. 13. 257. Note: Tax rates include both federal and state tax rates and are based on the typical tax bracket of Wealthfront clients. 88 Alaska 0. We'll email you as soon as it is available. 20% 30-day blended SEC yield (after fees, with total returns from March 30, 2023 – November 7, 2023 of 2. securities in order for any dividend income derived from these obligations to be exempt from state income tax. So it looks like you earned dividend income from that vanguard tax exempt municipal bond fund. Federal tax treatment. The amount of municipal bond interest from your state, Puerto Rico, the Virgin Islands, and Guam can be calculated by multiplying the total interest dividend you received from a fund (reported as tax-exempt interest on Form 1099-DIV) by the appropriate percentage of interest received from your state, Puerto Rico, the Virgin Islands, and Guam. Check the. For cash accounts that generate more than $10 of interest or received $600 or more in awards, we'll post a tax form 1099. territory during 2020. The rate will be 4% for 2023, 3% for 2024. Anything higher than that results in a 20% rate. Generally, the U. Federal tax treatment. Non-qualified dividends are taxed at regular income tax rates. the portion of federally tax-exempt dividends derived from interest, on a state-by-state basis. box 11, shows exempt-interest dividends from a. For shares acquired on or after January 1, 2012, only dividends from Indiana sources and dividends from U. , if there are insufficient realized gains in the tax period, the use of harvested losses may be limited to a $3,000 deduction. Your broker may charge an fx fee to convert those to GBP. Fidelity reports to the IRS and applicable shareholders on Form 1099-DIV exempt-interest dividends distributed from mutual funds. An account balance of $10,000, for instance, would pay about $25 per year. (TSB-M-79-(14)-I) Previously. Interest income details 17 . $120K (wages) + $40K (NII) = $160K (MAGI) $170K (wages) + $80K (NII) = $250K (MAGI) IRS Form 8960 is devoted to the calculation of the net investment income tax. This past year Wealthfront lowered the minimum account balance required to take advantage of Stock-level Tax-Loss Harvesting to $100,000. 6D reports any tax exempt dividends that were distributed in your taxable investment account. Sometimes I get so confused I get a mental block even if it's right in front of me. In most states, fund dividends from interest on direct U. You can switch to the site for: Institutional Investors or Global Investors. If any federal tax was withheld in box 4, enter this amount here. Utah-specific taxation of municipal bond interest View the percentage of federal tax-exempt interest income that's subject to individual income tax in Utah for each Vanguard fund that invests in municipal. How Are Exempt Interest Dividends Reported? Exempt interest dividends are reported to a taxpayer on Form 1099-DIV,. Noncash liquidation distributions $ 11 . 75% 6. 00 may be. They are exempt from federal tax, but only the amount that is from your home state,. After-tax benefit in 2022: If you used Tax-Loss Harvesting in a Classic portfolio in 2022, our service harvested enough losses across all client vintages. Based on a client’s tax situation, our goal is to recommend an optimal allocation for them that maximizes after-tax earnings. For the primary instrument for Dividend Stocks, Wealthfront used the Dow Jones US Dividend 100 Index (prior to April 27, 2006), and VIG thereafter. The effectiveness of the Tax-Loss Harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront Advisers and type of investments (e. We charge a small, 0. . This section lists federal tax-exempt interest and exempt interest dividends you received, by security. 43%. This tax-optimization strategy is carried out when one ETF is trading at a. Exempt-interest dividends are usually interest payments on state or municipal bonds. Market discount on tax-exempt bonds, as well as swap gains, are Taxable distributions 2022 Form 1099-DIV or substitute Form 1099. Any information on this matter can be found by utilizing our mutual fund tax information page on Fidelity. (. g. Today I am excited to announce the first significant improvements to Wealthfront’s investment service since I joined the company as chief investment officer. However, dividends that represent payments from otherwise federally tax-exempt entities (but from those outside of the state of New. , taxable or nontaxable) or holding. 5 billion in harvested losses by an assumed marginal tax rate of 37. The majority of states have a homestead property tax exemption that allows you to protect a certain amount of the value of your primary property from taxes. They would still tax the other dividends. 1040 or 1040-SR for where to report. Tax-exempt status can be a good thing, as it can translate to tax savings. S. 75% 1. If less than 95% of the federally tax-exempt interest dividend from a. government securities" (shown below in Column 1) by the amount for that fund in Box 1a of your Form 1099-DIV. Losses are recognized, but the overall asset class distribution. Client acknowledges that the Wealthfront Advisers and Wealthfront Brokerage are subject to certain anti-money laundering (“AML”) and related provisions under applicable laws, rules, and regulations and areWithdrawals are also tax-free. Hand off your taxes, get expert help, or do it yourself. Percentage of eligible income : from U. Exempt-interest dividends are often associated with mutual funds that invest in municipal bonds. This includes information such as dividends and capital gains received during the year. If you owned shares of any of the Fidelity funds listed in the table on the following pages of this letter during 2019, a portion of the tax-exempt interest dividend income you earned may be exempt from your state’s income tax. territories and possessions can be excluded. Most likely this form will be available on January 31st. For 2023, qualified dividends may be taxed at 0% if your taxable income falls below: $44,625 for those filing single or married filing separately, $59,750 for head of household filers, or. Individual taxpayers can exclude 100% of their federally tax-exempt income dividends related to fund shares acquired prior to January 1, 2012. Box 13 is used to report exempt-interest dividends subject to the alternative minimum tax. Treasury interest is state tax-exempt only if you receive it directly from the Treasury. Box 13 is used to report exempt-interest dividends subject to the alternative minimum tax. Single State Municipal Funds The information below summarizes the percentage of exempt inte rest income received by various BlackRock Closed-End Funds on a s tate-by-For the Vanguard Federal Money Market Fund, this percentage was 37. Tax-exempt income is reported in Box 12 on Form 1099-DIV and income subject to federal AMT is reported in Box 13. And your heirs won't pay an inheritance or estate tax in South Dakota. Alabama 1. The effectiveness of the Tax-Loss Harvesting strategy to reduce the tax liability of the client will depend on the client’s entire tax and investment profile, including purchases and dispositions in a client’s (or client’s spouse’s) accounts outside of Wealthfront Advisers and type of investments (e. for 2017, anyway. Highlight April 15 on your calendar before you do anything else. Territory are listed below. If any federal tax was withheld in box 4, enter this amount here. $89,250 for married filing jointly or qualifying widow (er) filing status. Background: This account will be taxable joint account, about $250k to start and then adding about $10k/mo. Some states require a minimum percentage of home state bonds to permit the state tax exemption. TurboTax Live Full Service Business Taxes. 03% 0.