Capital Gains and Losses
Questions and comments about tax rules for buying and selling stocks, mutual funds, real estate and other assets.
FNJHX & NJ 1040 tax reporting
Posted by: stewartb, February 14, 2017 08:07PM
Fidelity NJ Municipal Income Fund (FNJHX) and NJ 1040 tax reporting:
I have this Fidelity Fund for many years with capital gain line 2a and exempt interest dividends line 10 on my 1099-DIV.
I receive a yearly statement from Fidelity that the fund's capital gain is 100% exempt in NJ. However the statement also says "This distribution may be exempt from NJ state income tax. This distribution that may be exempt from NJ state income tax represents exempt gains realized by the fund on the sale of certain securities." I'm confused by these two seemingly conflicting statements. If the fund's capital gain is "100% exempt" then isnt all of line 2a exempt interest dividends, and therefore should go on line 15b of my NJ 1040? Why do they also state it "may be exempt"? I called and emailed Fidelity but they refuse to give me tax information of any kind. Do you know the answer? I am of the opinion that both exempt interest dividends, line 10 and this capital gain, line 2a of my 1099-DIV are both tax exempt interest, line 15b of the NJ 1040 Thank you



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