Municipal Income Funds: Percentage of interest income subject to AMT

The alternative minimum tax (AMT) was created for taxpayers who are eligible for certain tax deductions from their adjusted gross income. With the AMT, many deductions and credits normally allowed are eliminated for specific taxpayers. The Tax Cuts and Jobs Act eliminated the corporate AMT for tax years beginning after Dec. 31, 2017.

A shareholder who is an individual can determine if the AMT applies to him or her by completing the AMT calculation on IRS Form 6251. The instructions for Form 6251 will assist shareholders with calculating their AMT. A percentage of the income earned on the tax-exempt funds may be subject to the AMT. The information below is for calendar year 2019.

Fund Percentage of interest income
subject to AMT for 2019
Delaware Investments® Colorado Municipal Income Fund, Inc. 3.25%
Delaware Investments® National Municipal Income Fund 8.38%
Delaware Investments® Minnesota Municipal Income Fund II, Inc. 6.29%
Source: Delaware Funds® by Macquarie

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