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Fund-Specific Tax Information for Your Tax Returns

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Search By Fund For Tax Information

To access tax information for a specific fund, use the Fund Search below. Enter a fund name, fund number, NASDAQ symbol or CUSIP number in this box, and select the fund from the menu. You will then be taken to the Tax Information section of that fund’s product page.

Enter a fund name or partial name, fund number, NASDAQ symbol, or CUSIP number.

  

U.S. Government Interest Income

Percent of Income Attributable to Direct U.S. Government Obligations for 20131
 

At least 1% of the 2013 income earned by the following funds was attributable to direct U.S. government obligations:

Franklin Global Government Bond Fund 14.17%
Franklin Limited Maturity U.S. Government Securities Fund 35.25%
Franklin Low Duration Total Return Fund 25.71%
Franklin Real Return Fund 45.89%
Franklin Strategic Income Fund 1.05%
Franklin Templeton Global Allocation Fund 2.65%
Franklin Templeton Multi-Asset Real Return Fund 8.38%
Franklin Total Return Fund 20.14%

Information for those funds with less than 1% of 2013 earned income being attributable to direct U.S. government obligations is available on the Search by Fund for Tax Information page of the Tax Center.


States generally grant tax-free status to interest income earned from direct obligations of the U.S. government. This tax-free status may also apply to dividend distributions mutual fund shareholders receive from a mutual fund’s investment in such obligations.

Direct obligations of the U.S. government include U.S. Treasury bonds, notes, bills and certificates, U.S. savings bonds and many obligations issued by agencies of the U.S. government (such as the Federal Home Loan Bank, the Federal Deposit Insurance Corporation [FDIC] and many other federal agencies).

The income on repurchase agreements and mortgage-backed securities, including Government National Mortgage Association (GNMA or Ginnie Mae) securities and Federal National Mortgage Association (FNMA or Fannie Mae) securities, does not qualify for tax-free treatment.

Depending upon your state’s laws, you may be entitled to declare a percentage of your income dividends as tax-exempt income on your 2013 state personal income tax return.1,2

You can determine the amount of your income derived from direct U.S. government obligations by multiplying the percentage found here by the total ordinary dividends you received during the calendar year, as reported on your Form 1099-DIV, Box 1a.

Important Legal Information

The information contained in this Tax Center is not intended to be a complete discussion of all federal or state income tax requirements. This information cannot be used by an investor to avoid any income tax penalties that may be imposed under the Internal Revenue Code. Investors should seek advice from a financial and/or tax advisor about the potential tax implications of their investments in Franklin Templeton fund(s) based on their individual circumstances.

Footnotes

  1. The percentage of direct U.S. government obligation interest available for tax-exempt treatment may be limited in states that require a fund to meet certain minimum investment thresholds. Please contact your tax advisor to determine the availability for tax-exempt treatment in your state.
  2. Corporate shareholders may be subject to different state income tax return requirements and should consult their tax advisor regarding these requirements.

Tax-Exempt Income by Jurisdiction

The 2013 income dividends you received from your Franklin tax-free income fund(s) are fully exempt from regular federal income tax. Based on income the fund earned from state tax-exempt obligations, a portion of such dividends may also be exempt from your state’s personal income tax. For investors subject to the alternative minimum tax, a small portion of fund dividends may be taxable. Distributions of capital gains and ordinary income, if any, are generally taxable.1

You can determine the portion of income dividends that are attributable to bonds of a particular state and U.S. territories by multiplying the percentage found here by the amount of tax-exempt income dividends for each fund as reported on Form 1099-DIV.

Important Message for California Shareholders: Each fund is required to report to the Franchise Tax Board by May 31, 2014, your total 2013 payments of tax-exempt interest dividends (exempt from federal income tax), and the percentage of this total that is attributable to bonds of California and U.S. territories.

Important Message for Arizona, Indiana and Utah Shareholders: If you are a resident of Arizona, Indiana or Utah and own shares in Franklin tax-free income funds, a portion of your tax-exempt dividends may be subject to state income tax. See State Tax Information for additional information.

The following table lists the percentage of your 2013 income dividends that may qualify for exemption in your state. This percentage should be multiplied by the amount of Tax-Exempt Income paid by each fund as reported on your Form 1099-DIV, Box 10.2

  Franklin Federal Tax-Free Income Fund Franklin Federal Inter.-Term Tax-Free Income Fund Franklin High Yield Tax-Free Income Fund Franklin Insured Tax-Free Income Fund Franklin Tax-Exempt Money Fund3 Franklin Federal Limited-Term Tax-Free Income Fund

 

Footnotes
1. Corporate shareholders may be subject to different state income tax return requirements and should consult their tax advisor regarding these requirements.

2. The percentage of income dividends by jurisdiction for each separate income distribution that Franklin Templeton funds paid during 2013 is available. To obtain this information, please call Shareholder Services at (800) 632-2301.

3. Effective July 2, 2013, Franklin Tax-Exempt Money Fund was liquidated and the fund was closed.

4. This state allows the pass-through of exempt interest if a fund meets certain minimum investment requirements. The funds listed above did not meet the minimum investment requirements for this state.

5. This state allows the pass-through of exempt interest only on specific, state-designated obligations.

6. An investment in the funds listed above may be exempt (partially or completely) from any intangible personal property tax that may be assessed in this state.

STATE
Alabama 1.17% 2.60% 1.03% 3.93% 0.00% 1.24%
Alaska 0.46% 0.14% 0.00% 0.50% 0.00% 0.55%
Arizona 2.90% 6.05% 2.61% 2.39% 0.00% 4.85%
Arkansas 0.09% 0.24% 0.04% 0.34% 0.00% 0.40%
California4 13.09% 12.75% 16.60% 8.79% 0.00% 8.76%
Colorado 2.29% 2.54% 3.86% 2.68% 0.00% 0.35%
Connecticut4 0.19% 0.81% 0.15% 0.25% 0.00% 0.16%
Delaware 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
District of Columbia  2.88% 0.00% 2.94% 0.86% 0.00% 0.00%
Florida 6.93% 8.92% 6.07% 7.10% 0.00% 11.19%
Georgia 3.74% 1.18% 2.87% 4.95% 0.00% 2.40%
Hawaii 0.68% 0.00% 0.44% 0.02% 0.00% 0.02%
Idaho 0.16% 0.00% 0.70% 0.00% 0.00% 0.10%
Illinois4 6.68% 5.43% 6.14% 7.54% 0.00% 7.55%
Indiana 1.17% 0.00% 1.74% 0.56% 0.00% 0.57%
Iowa4 0.00% 0.00% 0.56% 0.00% 0.00% 0.00%
Kansas5,6 0.36% 0.00% 0.13% 0.00% 0.00% 0.04%
Kentucky 1.35% 0.69% 1.24% 1.31% 0.00% 0.12%
Louisiana 2.25% 1.80% 3.40% 2.63% 0.00% 0.35%
Maine 0.40% 0.00% 0.28% 1.06% 0.00% 0.00%
Maryland 0.55% 0.47% 0.68% 1.18% 0.00% 0.52%
Massachusetts 2.84% 1.12% 1.33% 2.21% 0.00% 0.37%
Michigan 3.29% 4.61% 3.81% 7.59% 0.00% 7.87%
Minnesota4 0.27% 0.73% 0.55% 0.58% 0.00% 2.53%
Mississippi 0.55% 0.00% 0.73% 0.43% 0.00% 0.02%
Missouri 0.59% 0.74% 0.36% 0.94% 0.00% 0.07%
Montana 0.09% 0.00% 0.00% 0.00% 0.00% 0.00%
Nebraska 1.58% 0.00% 0.07% 0.13% 0.00% 0.39%
Nevada 0.51% 1.55% 1.08% 1.31% 0.00% 0.70%
New Hampshire 0.24% 0.25% 0.34% 0.25% 0.00% 0.47%
New Jersey 3.22% 9.17% 3.42% 2.70% 0.00% 7.18%
New Mexico 0.00% 0.00% 1.72% 0.00% 0.00% 0.95%
New York 7.06% 10.76% 5.60% 7.40% 0.00% 10.25%
North Carolina 2.06% 1.79% 0.54% 0.77% 0.00% 0.76%
North Dakota 0.30% 0.00% 0.00% 1.32% 0.00% 0.00%
Ohio 3.24% 5.81% 2.50% 3.40% 0.00% 6.62%
Oklahoma5 0.00% 0.00% 0.08% 0.02% 0.00% 0.43%
Oregon 0.79% 1.20% 0.15% 0.22% 0.00% 0.11%
Pennsylvania5 2.75% 5.15% 2.14% 5.61% 0.00% 10.08%
Rhode Island 1.15% 0.00% 0.25% 1.49% 0.00% 0.61%
South Carolina 1.55% 1.40% 0.82% 2.00% 0.00% 1.00%
South Dakota 0.35% 0.00% 0.00% 0.23% 0.00% 0.00%
Tennessee 0.25% 0.54% 0.83% 0.38% 0.00% 2.58%
Texas 9.34% 6.11% 7.91% 6.93% 0.00% 2.88%
Utah 1.15% 0.69% 0.00% 0.00% 0.00% 0.08%
Vermont 0.55% 0.00% 0.00% 0.00% 0.00% 0.00%
Virginia 0.32% 1.05% 0.99% 0.62% 0.00% 0.21%
Washington 3.62% 1.13% 2.44% 1.58% 0.00% 1.20%
West Virginia 0.57% 0.00% 0.39% 0.46% 0.00% 0.00%
Wisconsin4 0.79% 0.27% 0.58% 1.15% 0.00% 0.00%
Wyoming 0.06% 0.00% 0.29% 0.00% 0.00% 1.08%
  Franklin Federal Tax-Free Income Fund Franklin Federal Inter.-Term Tax-Free Income Fund Franklin High Yield Tax-Free Income Fund Franklin Insured Yield Tax-Free Income Fund Franklin Tax-Exempt Money Fund3 Franklin Federal Limited-Term Tax-Free Income Fund
TERRITORIES
American Samoa 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Guam 0.00% 0.11% 1.39% 0.00% 0.00% 0.00%
N. Marianas  0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Puerto Rico  3.52% 2.20% 7.60% 3.29% 0.00% 2.39%
Virgin Islands  0.06% 0.00% 0.61% 0.90% 0.00% 0.00%

Important Legal Information

The information contained in this Tax Center is not intended to be a complete discussion of all federal or state income tax requirements. This information cannot be used by an investor to avoid any income tax penalties that may be imposed under the Internal Revenue Code. Investors should seek advice from a financial and/or tax advisor about the potential tax implications of their investments in Franklin Templeton fund(s) based on their individual circumstances.


Related Pages

State Tax Information

Click on the appropriate link below to display that state’s tax information for certain Franklin Templeton funds.

Arizona Shareholders

A portion of any long-term capital gain distribution made by a Franklin Templeton fund may be eligible for a partial subtraction from Arizona gross income. This information is available by request. Please contact Shareholder Services at (800) 632-2301 for additional information.

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Indiana Resident Taxable Income

The state of Indiana provides that income earned from non-federal government entities outside of Indiana (non-Indiana municipal bonds) is subject to Indiana income tax unless at least one of the following applies:

  1. The income is derived from bonds purchased prior to January 1, 2012; or
  2. The income is derived from Indiana obligations; or
  3. The income is derived from federal government obligations, including U.S. territories.

For additional information, visit the Indiana Department of Revenue website at http://www.in.gov/dor/4735.htm and click on “Interest from U.S. government obligations deduction.”

Indiana taxable percentages for some Franklin tax-free income funds are found below. Percentages for other funds are available by calling Shareholder Services at (800) 632-2301.

For information about how to report this on your Indiana individual tax return, please contact your tax or financial advisor.

2013 Indiana Taxable Income
Franklin California Tax-Free Income Fund 13.00%
Franklin Federal Intermediate-Term Tax-Free Income Fund 24.00%
Franklin Federal Limited-Term Tax-Free Income Fund 25.00%
Franklin Federal Tax-Free Income Fund 16.00%
Franklin High Yield Tax-Free Income Fund 19.00%
Franklin Insured Tax-Free Income Fund 16.00%
Franklin Tax-Exempt Money Fund1 39.00%

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Utah Resident Taxable Income

The state of Utah provides that income earned from non-federal governmental entities outside of Utah (non-Utah municipal bonds) is subject to Utah income tax unless at least one of the following applies:

  1. The income is derived from bonds purchased prior to January 1, 2003; or
  2. The income is derived from Utah obligations; or
  3. The income is derived from federal government obligations, including U.S. territories; or
  4. The income is derived from obligations of another state that does not tax Utah obligations.

The Utah State Tax Commission lists the states and political subdivisions that do not tax Utah obligations on its website at www.incometax.utah.gov/additions/municipal-bond-interest.

Utah taxable percentages for some Franklin tax-free income funds are found below. Percentages for other funds are available by calling Shareholder Services at (800) 632-2301.

For information about how to report this on your Utah individual tax return, please contact your tax or financial advisor.

2013 Utah Taxable Income
Franklin California Tax-Free Income Fund 69.00%
Franklin Federal Intermediate-Term Tax-Free Income Fund 81.00%
Franklin Federal Limited-Term Tax-Free Income Fund 84.00%
Franklin Federal Tax-Free Income Fund 67.00%
Franklin High Yield Tax-Free Income Fund 64.00%
Franklin Insured Tax-Free Income Fund 73.00%
Franklin Tax-Exempt Money Fund1 83.00%

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Important Legal Information

The information contained in this Tax Center is not intended to be a complete discussion of all federal or state income tax requirements. This information cannot be used by an investor to avoid any income tax penalties that may be imposed under the Internal Revenue Code. Investors should seek advice from a financial and/or tax advisor about the potential tax implications of their investments in Franklin Templeton fund(s) based on their individual circumstances.

Footnotes

  1. Effective July 2, 2013, Franklin Tax-Exempt Money Fund was liquidated and the fund was closed.

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