What You Need to Know About BNY Mellon Municipal Bond Fund State Tax Information for 2021
As we approach the end of the financial year, it’s important to be aware of the tax implications of any investments you may hold. If you are invested in the BNY Mellon Municipal Bond Fund, you’ll want to pay close attention to the state tax information for 2021. Here’s what you need to know.
Understanding the BNY Mellon Municipal Bond Fund
The BNY Mellon Municipal Bond Fund is a mutual fund that invests in municipal bonds issued by states, counties, and municipalities across the United States. The fund’s primary objective is to provide current income that is exempt from federal income tax and, in some cases, state and local income tax.
Tax-Exempt Income and State Taxes
One of the key benefits of the BNY Mellon Municipal Bond Fund is that the income it generates is tax-exempt at the federal level. However, this does not necessarily mean that the income is exempt from state tax. Each state has its own tax laws, and some states tax municipal bond income from outside their borders.
In general, if you reside in the state where the bond was issued, you will not have to pay state tax on the income generated by the BNY Mellon Municipal Bond Fund. However, if you live in a different state where the bond was not issued, you may be subject to state tax on the income. To determine whether you will owe state tax on the income, you should consult with your tax advisor.
State-Specific Information for 2021
It’s important to be aware of any changes to state tax laws that may affect your investment in the BNY Mellon Municipal Bond Fund. Here is a summary of state-specific information for 2021:
– California: California residents will be subject to state tax on income generated by the BNY Mellon Municipal Bond Fund.
– New York: New York residents will continue to be exempt from state tax on income generated by the BNY Mellon Municipal Bond Fund.
– Texas: Texas residents will continue to be exempt from state tax on income generated by the BNY Mellon Municipal Bond Fund.
– Florida: Florida residents will be subject to state tax on income generated by the BNY Mellon Municipal Bond Fund.
– Ohio: Ohio residents will continue to be exempt from state tax on income generated by the BNY Mellon Municipal Bond Fund.
It’s important to note that this is not an exhaustive list, and state tax laws can change frequently. Be sure to consult with your tax advisor for state-specific information that may affect your investment in the BNY Mellon Municipal Bond Fund.
Conclusion
Investing in the BNY Mellon Municipal Bond Fund can be a smart move for those looking to generate tax-exempt income. However, it’s important to be aware of the potential state tax implications of this investment. By understanding the state tax information for 2021, you can make informed decisions and hopefully avoid any unpleasant surprises come tax season. Remember to consult with your tax advisor for personalized advice based on your individual circumstances.
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