Supplemental Tax FAQs

If the mutual fund that you own holds certain types of securities, your earnings from those funds could qualify for a tax break. Find out if you own funds that contain these types of securities.

What are dividends derived from U.S. government obligations?

• A portion of some Janus Henderson mutual funds earn investment income from government obligations, or debt.
• A portion of the mutual fund dividends earned from these funds may be exempt from income taxes in some states.
• First, check to see if you own shares in funds with dividends derived from U.S. government obligations and what percentage of income came from those sources.
• Then, consult a tax professional, or your state or local tax office to determine if your state allows you to exclude some or all of the income you earn from mutual funds that invest in U.S. government obligations.

What are other direct and indirect U.S. government obligations?

• Other direct and indirect U.S. government obligations represent debt instruments issued by certain federal banks that lend credit, home loans, student loans and mortgages.
• A portion of the dividends paid by a mutual fund may not be subject to state income taxes.
  First, refer to the direct and indirect U.S. government obligations document to see if you own shares in any of the funds listed.
• Then, consult a tax professional, or your state or local tax office to determine if your state allows you to exclude some or all of the dividends you earned from mutual funds that invest in U.S. government obligations.

What is a foreign tax credit or deduction?

• Foreign taxes paid by a mutual fund and passed through to its shareholders may be eligible for a federal tax deduction or credit.
• First, refer to the Foreign Tax Information document and Form 1099-DIV to see if you own shares in a fund that paid foreign taxes.
• Then, refer to IRS Publication 514 or consult a tax professional to determine if and how you should report this.

What are corporate dividends received deductions?

• U.S. corporations that receive a dividend from certain mutual funds may be eligible to deduct a portion of the dividend paid by other U.S. corporations.
• A percentage of the dividend paid by a fund that qualifies for this deduction is provided on the corporate dividends received deduction document.
• First, refer to the corporate dividends received deduction document to see if you own shares of a fund listed on the document.
• Then, refer to IRS Publication 542 and consult a tax professional to determine if and how your corporation should report this.