Dividends from Treasury Bill ETFs are generally **exempt from state and local taxes**¹⁴. However, they are subject to federal taxes⁴. The portion of fund dividends attributed to interest from Treasuries isn't qualified dividends. It's taxed at normal tax rates for federal income tax¹³.
When you have multiple mutual funds or ETFs in a taxable brokerage account, the broker reports dividends received from all sources on one 1099-DIV form¹.
The 1099-DIV form doesn't have a special box broken out for dividends attributed to Treasuries¹. It's up to you to determine how much of the dividends from each source came from Treasuries¹.
Please consult with a tax professional for advice tailored to your specific circumstances. This information is intended to be used and must be used for informational purposes only. It is important to do your own research and consider your personal circumstances before making any tax decisions.
Source: Conversation with Bing, 12/8/2023
(1) State Tax-Exempt Treasury Interest from Mutual Funds and ETFs.
https://thefinancebuff.com/state-tax-exempt-treasury-fund-etf.html.
(2) Bond ETF Taxation: 3 Things You Need To Know | etf.com.
https://www.etf.com/etf-education-center/etf-basics/bond-etf-taxation-three-things-you-need-to-know.
(3) State Tax-Exempt Treasury Interest from Mutual Funds and ETFs.
https://bing.com/search?q=Are+dividends+from+treasure+bill+ETFs+taxable+by+states?.
(4) Treatment of treasury income in ETF for State Taxes : r/tax - Reddit.
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(5) How government bonds are taxed | Vanguard.
https://investor.vanguard.com/investor-resources-education/taxes/how-government-bonds-are-taxed.
(6) undefined.
https://www.reddit.com/r/investing/comments/118qdkp
