Brokerage houses report separately if the source is a US Treasury bills or US Govt obligations like Fannie Mae. I was under the impression that only US Treasury source was deductible in Virginia and other states. Money market funds are made up almost entirely of US Treasures and US Govt obligations. Folks have a lot of money now in MM.
Ah, you're right. I was confusing it with mutual funds. But if a client has a MM account (reported by Vanguard as dividends), and 66% of it is derived from US treasury bills, can't I deduct that on the state return? What about if derived from US Govt obligations?