Tax: Dividends and Distributions: Tax Treatment of Money Market Dividends

Interest dividends received from money market mutual funds are considered taxable nonqualified dividends.  Money market funds are a type of mutual fund that tries to increase current income available to shareholders by buying short-term market investments not eligible for reduced tax rates.

In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this FAQ was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer.