A portion of the dividend income from your client’s municipal bond ETF holdings may be exempt from state income tax, depending on their state’s tax laws. Betterment has calculated this for your client, based on the state of residence listed within their account. Simply head to the Documents section of your client’s account and then click the Tax Forms tab to download their Supplemental Tax Statement, which will contain this figure.
If your client’s residence has changed or they need to calculate the figure themselves, please consult materials from the fund provider. We will update this article with a link to the fund provider’s website along with calculation instructions by 2/1/19.