Tax FAQs

Visit our tax calendar to find out when tax forms will be available online and mailed.

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 financial professionals can access this tax form by logging into their account.

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.

 Yes. Franklin Templeton financial professionals log in here. Putnam Investments financial professionals log in here.

Yes. Franklin Templeton issues this form for each account registered under each taxpayer identification number.
Shareholders could also receive more than one per account if:

1. They received dividends while residing in California, then moved to another state and received additional dividends while residing in the new state
   OR
2. They received dividends while residing in another state and then moved to California and received additional dividends.

In this instance, shareholders may need to follow the IRS guidelines for nominees.

IRS forms, instructions and publications can be obtained on the IRS website.

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

Putnam 529 for America 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

Visit our Understanding Tax Forms page to learn more.

Yes. Franklin Templeton financial professionals log in here. Putnam Investments financial professionals log in here .

Visit our Understanding Tax Forms page to learn more.

Participants are allowed to make contributions to their retirement accounts up until the original tax filing deadline of the following year. Putnam Investments shareholders will be issued an initial Form 5498 in January and then a subsequent Form 5498 at the end of May if there were any additional contributions during that time frame.  Franklin Templeton shareholders will be issued Form 5498 at the end of May.

Yes. Franklin Templeton financial professionals log in here. Putnam Investments financial professionals log in here.

Visit our Understanding Tax Forms page to learn more.

Participants are allowed to make contributions to their Coverdell ESA accounts up until the original tax filing deadline of the following year. Putnam shareholders will be issued an initial Form 5498-ESA in January and then a subsequent Form 5498-ESA at the end of May if there were any additional contributions during that time frame. Franklin Templeton shareholders will be issued Form 5498-ESA at the end of April.

Yes. Franklin Templeton financial professionals log in here. Putnam Investments financial professionals log in here.

Visit our Understanding Tax Forms page to learn more.

If the shareholder is a nonresident alien individual or foreign entity with investments in US-based mutual funds, they will receive a Form 1042-S if they received any of the following during the calendar year: ordinary income dividends (including interest-related dividends), short-term capital gain distributions, distributions from long-term capital gains, gains from US real property interests, return of capital distributions or distributions from retirement accounts.

Yes, but only for distributions from certain retirement accounts with Fiduciary Trust International of the South (FTIOS) or Putnam Fiduciary Trust Company, LLC as the custodians.

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. 
 

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, information for the most recent tax year can be found here. For historical information, click on the fund name and then select the year.

Each fund is required to report to the California Franchise Tax Board by May 31 your total payments of tax-exempt interest dividends (exempt from federal income tax) for the previous year and the percentage of this total that is attributable to bonds of California and US territories.

Each fund is required to report to the Connecticut Department of Revenue by April 30 your total payments of tax-exempt interest dividends (exempt from federal income tax) for the previous year that may be subject to state income tax for individual residents of Connecticut. 

Each fund is required to report to the Minnesota Department of Revenue by June 1 your total payments of tax-exempt interest dividends (exempt from federal income tax) for the previous year that may be subject to state income tax for individual residents of Minnesota.

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.

This information can be requested by calling Shareholder Services at (800) 632-2301. Please allow up to ten business days to process the request.

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:

1. Bonds purchased prior to January 1, 2012
2. Indiana obligations
3. Federal government obligations, including US territories 

For multi-state municipal bond funds, the percentage for the most recent tax year can be found here. For historical information, click on the fund name and then select the year.

The state of Minnesota provides that federal tax exempt-interest dividends are subject to Minnesota income tax unless at least 95% of the income is derived from Minnesota-source obligations. 

• If 95% or more of the dividend is from Minnesota-source obligations, the portion taxable by Minnesota is the portion of the dividend not derived from an obligation sourced to Minnesota or a federal obligation, including US territories (e.g. Puerto Rico, Guam, US Virgin Islands, etc)
• If less than 95% of the dividend is from Minnesota-source obligations, the only portion not taxable by Minnesota is the portion of the dividend derived from federal obligations, including US territories

For multi-state municipal bond funds, the percentage for the most recent tax year can be found here.  For historical information, click on the fund name and then select the year.

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:

1. Bonds purchased prior to January 1, 2003
2. Utah obligations
3. Federal government obligations, including US territories
4. Obligations of another state that does not tax Utah obligations

For multi-state municipal bond funds, the percentage for the most recent tax year can be found here. For historical information, click on the fund name and then select the year.

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.

It can be found here.

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.