Non-Qualified Dividends in Municipal Bond Fund Not Tax-Free. How to Fix Report of Tax-Free Income to
I have several municipal bond funds in a taxable account. This year, a couple of the funds have something called Non-Qualified Dividends, which are apparently not tax-free, because if these amounts are included in my Tax-Exempt Dividends Report, the total does not agree with the amount of Tax-Exempt Dividends on my 1099. If I subtract these amounts, my figures agree with the 1099. My problem is how do I change the Tax-Exempt Dividends Report? I have tried adding artificial transactions in my register as Miscellaneous Expenses, and checked Miscellaneous Expense as a category that gets included in the report, but although the transaction shows, no amount shows in the report, and the total amount of dividends in that muni fund does not change. I think that would also throw off my register, as I did actually receive these amounts. I could possibly characterize them as Short Term Capital Gains, as there were some, which I initially recorded as Reinvested Dividends. When I changed these Reinvested Dividends to Reinvested Short Term Capital Gains, the amounts were subtracted from the Tax-Exempt Dividends Report. However, these Non-Qualified Dividend amounts are not actually Short Term Capital Gains, so if I did a Capital Gains Report, presumably that would be wrong. I don't want to change the muni fund to taxable, because it really isn't. I'm using Quicken 2016 Premier. Thanks!
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