Below is a list of tax-related frequently asked questions. Please select a category, then select a question. For additional information and FAQs, along with IRS forms, instructions and publications, visit the IRS website.
Year-end tax forms and statements
Visit our tax calendar to find out when tax forms will be available online and mailed.
Composite Form 1099
Visit our Understanding Tax Forms page to learn more.
Franklin Templeton shareholders will receive a Composite Form 1099 for any transactions in their account during the calendar year that were subject to 1099-DIV and/or 1099-B reporting.
If the dividends or other distributions paid to the shareholder were less than $10, they will not receive Form 1099-DIV unless backup withholding was withheld or the fund elected to pass through foreign tax paid. They may refer to their year-end statement for dividends that are less than $10.
Yes, Franklin Templeton shareholders can access this tax form by logging into their account.
Form 1099-DIV
Visit our Understanding Tax Forms page to learn more.
When a shareholder received $10 or more in dividends or other distributions from their fund during the calendar year.
If the dividends or other distributions paid to the shareholder were less than $10, they will not receive a Form 1099-DIV unless backup withholding was withheld or the fund elected to pass through foreign tax paid. The shareholder may refer to their year-end statement for dividends that are less than $10.
Note: Franklin Templeton shareholders will receive Form 1099-DIV reporting information on Composite Form 1099.
Yes. Distributions made by the fund are reported on Form 1099-DIV and must be reported by the shareholder on their federal and state income tax returns, whether they are received in cash or reinvested in additional fund shares.
Yes. If the tax-free fund distributed any tax-exempt interest dividends, ordinary income or capital gains of $10 or more, the shareholder will be issued a Form 1099-DIV.
Form 1099-B
Cost basis reporting information
To learn more about cost basis reporting, visit our Cost basis information page.
Form 1099-Q
Visit our Understanding Tax Forms page to learn more.
Yes. This tax form can be accessed from the links below depending upon the account and plan type. Note: a User ID and password will be required to view:
Franklin Templeton 529 College Savings Plan
NJBEST 529 College Savings Plan
Franklin Templeton Coverdell Education Savings Accounts with FTIOS as the custodian
Putnam Coverdell Education Savings Accounts with Putnam Fiduciary Trust Company, LLC as the custodian
Form 1099-R
Visit our Understanding Tax Forms page to learn more.
Form 5498
Form 5498-ESA
Form 1042-S
Visit our Understanding Tax Forms page to learn more.
Tax withholding for retirement accounts
Yes, depending on the shareholder's state of residence and the custodian of their retirement account, state tax withholding is allowed. Refer to the table below to determine if state tax withholding can be applied. If a state is not listed, state tax withholding is not allowed by either custodian. The amount of withholding is determined by the type of retirement plan and the state's withholding rules.
| State | Fiduciary Trust International of South (FTIOS) | Putnam Fiduciary Trust Company, LLC |
|---|---|---|
| Arkansas | Y | Y |
| California | Y | Y |
| Connecticut | Y | Y |
| Delaware | Y | Y |
| District of Columbia/Washington D.C. | Y | Y |
| Georgia | Y | N |
| Indiana | Y | N |
| Iowa | Y | Y |
| Kansas | Y | Y |
| Maine | Y | Y |
| Maryland | Y | Y |
| Massachusetts | Y | Y |
| Michigan | Y | Y |
| Minnesota | Y | Y |
| Mississippi | Y | N |
| Missouri | Y | N |
| Montana | Y | N |
| Nebraska | Y | Y |
| New Jersey | Y | N |
| New Mexico | Y | N |
| New York | Y | N |
| North Carolina | Y | Y |
| Oklahoma | Y | Y |
| Oregon | Y | Y |
| Utah | Y | N |
| Vermont | Y | Y |
| Virginia | Y | Y |
Tax-exempt income by jurisdiction
The income dividends from tax-free income funds are generally exempt from regular federal income tax. Based on income a fund earned from state tax-exempt obligations, a portion of such dividends may also be exempt from the shareholder's state’s personal income tax. Please note that for shareholders subject to the alternative minimum tax, a portion of fund dividends may be taxable and distributions of capital gains and ordinary income, if any, are generally taxable.
For tax-free income funds, this information can be found here.
For residents of Indiana and Utah, a portion of your tax-exempt interest dividends may be subject to state income tax. Refer to the Indiana or Utah specific tax information sections below.
Direct US government obligation
Direct obligations of the US government include US Treasury bonds, notes, bills and certificates, US savings bonds and many obligations issued by agencies of the US government—such as the Federal Home Loan Bank, the Federal Deposit Insurance Corporation (FDIC) and many other federal agencies. The following agencies issue obligations guaranteed by the US government, but are not direct obligations of the US government: Government National Mortgage Association (GNMA or Ginnie Mae), Federal National Mortgage Association (FNMA or Fannie Mae) and Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac).
States generally grant tax-free status to interest earned from direct obligations of the US government. This tax-free status may also apply to dividend distributions that mutual fund shareholders received from a mutual fund’s investment in such obligations. Shareholders may be entitled to declare a percentage of their income dividends as tax-exempt income on their state personal income tax return; however, some states may require that a fund meet certain minimum investment thresholds before income dividends can be treated as tax-exempt income. Shareholders should contact their tax professional about the tax-exempt treatment in their state. Corporate shareholders may be subject to different state income tax return requirements. Additionally, the income on repurchase agreements and mortgage-backed securities—including Government National Mortgage Association (GNMA or Ginnie Mae), Federal National Mortgage Association (FNMA or Fannie Mae) and Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac)—do not qualify for tax-free treatment as these are securities guaranteed but not directly issued by the US government.
Ordinary income dividends paid by funds as a result of investing in direct US government obligations are generally exempt from state and local taxation. However, the income on repurchase agreements and mortgage-backed securities—including Government National Mortgage Association (GNMA or Ginnie Mae), Federal National Mortgage Association (FNMA or Fannie Mae) and Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac)—do not qualify for tax-free treatment as these are securities guaranteed by, but not directly issued by the US government. The Franklin U.S. Government Securities Fund invests primarily in these securities.
Arizona-specific tax information
This information can be requested by calling Shareholder Services at (800) 632-2301. Please allow up to ten business days to process the request.
Indiana-specific tax information
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 income is derived from ONE of the following:
- Bonds purchased prior to January 1, 2012
- Indiana obligations
- Federal government obligations, including US territories
For multi-state municipal bond funds, this percentage can be found here.
Utah-specific tax information
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 income is derived from ONE of the following:
- Bonds purchased prior to January 1, 2003
- Utah obligations
- Federal government obligations, including US territories
- Obligations of another state that does not tax Utah obligations
For multi-state municipal bond funds, this percentage can be found here.