Earning interest on MMA and checking acct/ taxed differently?

#2 11-28-2006, 04:28 PM

mikepier[at]optonline.net wrote:
- quote -

> Are you taxed differently on the interest you earn from the MMA as
> opposed to the checking acct, or are you taxed on regular interest
> earned, regardless if it's checking or MMA?

It's taxed the same, unless it's a tax-exempt money market fund. For
example an MM that invests in US government securities would be exempt
from state tax, and one that invests in your home state's municipal
securities would be exempt from both federal and state income taxes. You
would see this breakdown on your end of year tax reports from the
financial institution where you hold the account.

-Tad

#1 11-28-2006, 04:26 PM

w...[at]talisys.com wrote:
- quote -

> A money market fund might issue dividends instead of interest. But
> since it'll won't be qualified dividends, the end result is that it is
> taxed the same as checking/savings interest. You just fill in a
> different box in your 1040x.
> mikepier[at]optonline.net wrote:
> > Are you taxed differently on the interest you earn from the MMA as
> > opposed to the checking acct, or are you taxed on regular interest
> > earned, regardless if it's checking or MMA?

Thanks

11-28-2006, 04:09 PM

A money market fund might issue dividends instead of interest. But
since it'll won't be qualified dividends, the end result is that it is
taxed the same as checking/savings interest. You just fill in a
different box in your 1040x.

mikepier[at]optonline.net wrote:
- quote -

> Are you taxed differently on the interest you earn from the MMA as
> opposed to the checking acct, or are you taxed on regular interest
> earned, regardless if it's checking or MMA?

#-1 11-28-2006, 02:58 PM

Are you taxed differently on the interest you earn from the MMA as
opposed to the checking acct, or are you taxed on regular interest
earned, regardless if it's checking or MMA?

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