instructions
How to Use This Worksheet
To determine how much of your Vanguard fund distributions is eligible for the various Massachusetts long-term capital gains
tax rates, follow these steps:
Step 1.
Fill in the long-term capital gains distribution amounts, by fund and by date of distribution, in Column 1 of the
worksheet on pages 2 and 3. These amounts can be found on your year-end account statement.
Step 2.
For each fund you received long-term capital gains distributions from in 2002, multiply the dollar amounts in
Column 1 by the factors in Column 2, and then enter the products in Column 3. The dollar amounts in Column 3
are the amounts of your long-term capital gains distributions that qualify for the Class B rate.
Step 3.
Multiply the dollar amounts in Column 1 by the factors in Column 4, and then enter the products in Column 5.
The dollar amounts in Column 5 are the amounts of your long-term capital gains distributions that qualify for the
Class C rate.
Step 4.
Step 5.
Step 6.
Step 7.
Step 8.
Multiply the dollar amounts in Column 1 by the factors in Column 6, and then enter the products in Column 7.
The dollar amounts in Column 7 are the amounts of your long-term capital gains distributions that qualify for the
Class D rate.
Multiply the dollar amounts in Column 1 by the factors in Column 8, and then enter the products in Column 9.
The dollar amounts in Column 9 are the amounts of your long-term capital gains distributions that qualify for the
Class E rate.
Multiply the dollar amounts in Column 1 by the factors in Column 10, and then enter the products in Column 11.
The dollar amounts in Column 11 are the amounts of your long-term capital gains distributions that qualify for the
Class F rate.
Multiply the dollar amounts in Column 1 by the factors in Column 12, and then enter the products in Column 13.
The dollar amounts in Column 13 are the amounts of your long-term capital gains distributions that qualify for the
Class G rate.
Multiply the dollar amounts in Column 1 by the factors in Column 14, and then enter the products in Column 15.
The dollar amounts in Column 15 are the amounts of your long-term capital gains distributions that qualify for the
5.3% rate.
Important Tax Information for 2002
Long-Term Capital Gains Worksheet
for Residents of Massachusetts
A recent change in Massachusetts law has established a single 5.3% rate for all long-term capital gains realized on or
after May 1, 2002. (Because of this, Vanguard will not need to send you this type of worksheet for tax years 2003 and
beyond.) Note that the long-term capital gains rate you are eligible for or subject to is dependent on when the fund
sold the securities for a gain, not when that gain was distributed to you. This means some of your gains, even though
paid to you on or after May 1, 2002, may be eligible for the lower rates if the securities were sold prior to that date.
The long-term capital gains distributions you received from Vanguard® funds in 2002 may be eligible for any number
of the classes and tax rates listed below. Use the worksheet on pages 2 and 3 to determine the amounts to report on
your Massachusetts income tax return; step-by-step instructions are provided on page 4.
For long-term capital gains realized between January 1, 2002, and April 30, 2002. Report these gains in the following six classes
(each of which is followed by the corresponding Massachusetts long-term capital gains tax rate):
• Class B represents property held more than one year but not more than two years (5%).
• Class C represents property held more than two years but not more than three years (4%).
• Class D represents property held more than three years but not more than four years (3%).
• Class E represents property held more than four years but not more than five years (2%).
• Class F represents property held more than five years but not more than six years (1%).
• Class G represents property held more than six years (0%).
For long-term capital gains realized on or after May 1, 2002. Report these gains at a rate of 5.3%.
To determine the dollar amount eligible for each class, multiply the amounts of the 2002 distributions you received
from Vanguard funds (the amounts you received are listed on your 2002 year-end account statement) by the factors
listed in the table for each fund and class. Then total the dollar amounts for each class, and enter those amounts on
Schedule D of your Massachusetts income tax return.
Step 9.
Total the dollar amounts listed in Column 3 (Class B), and then enter the sum on your Massachusetts income tax
return, Schedule D, Part 1, Line 5, Column A (along with any Class B long-term capital gains distributions you
may have from other sources).
Step 10.
Total the dollar amounts listed in Column 5 (Class C), and then enter the sum on your Massachusetts income tax
return, Schedule D, Part 1, Line 5, Column B (along with any Class C long-term capital gains distributions you
may have from other sources).
Note: This worksheet helps you compute only the amount of your Vanguard fund distributions eligible for the different
long-term capital gain tax rates. You may have income from other sources that is also eligible for or subject to these
various tax rates.
Step 11.
Total the dollar amounts listed in Column 7 (Class D), and then enter the sum on your Massachusetts income tax
return, Schedule D, Part 1, Line 5, Column C (along with any Class D long-term capital gains distributions you
may have from other sources).
Additional Information
Step 12.
Total the dollar amounts listed in Column 9 (Class E), and then enter the sum on your Massachusetts income tax
return, Schedule D, Part 1, Line 5, Column D (along with any Class E long-term capital gains distributions you
may have from other sources).
• If you have questions about the information provided in this tax update, call our Investor Information Department
at 1-800-662-7447. Note, however, that our associates cannot provide tax advice; if your tax situation is complex or
if you are uncertain about the interpretation of a specific rule, we recommend that you seek advice from a qualified
tax professional.
Step 13.
Total the dollar amounts listed in Column 11 (Class F), and then enter the sum on your Massachusetts income tax
return, Schedule D, Part 1, Line 5, Column E (along with any Class F long-term capital gains distributions you
may have from other sources).
• To request a copy of your year-end fund account statement, call us at 1-800-662-2739 or access your statement
anytime by logging on to www.vanguard.com.
Step 14.
Total the dollar amounts listed in Column 13 (Class G), and then enter the sum on your Massachusetts income tax
return, Schedule D, Part 1, Line 5, Column F (along with any Class G long-term capital gains distributions you
may have from other sources).
Step 15.
Total the dollar amounts listed in Column 15 (Subject to 5.3% Rate), and then enter the sum on your Massachusetts
income tax return, Schedule D, Part 2, Line 5 (along with any other gains realized on or after May 1, 2002, you may
have from other sources).
4
• You can also find a wide array of general tax-preparation data and tools in the Tax Services area of our website.
© 2003 The Vanguard Group, Inc. All rights reserved.
CGMA 012003
example
The following example shows how an investor who received a $200 long-term capital gains distribution from Vanguard Fund A would calculate the amount of the distribution that would qualify for each class and tax rate to be reported on the investor’s Massachusetts income
tax return:
Vanguard 2002 Long-Term Capital Gains Distributions Worksheet for Residents of Massachusetts
Column:
Vanguard Fund Name
Fund Number
Fund A
0000
Month and Year
of Distribution
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Long-Term
Capital Gains
Distribution
Portion of the
Distribution
Gains
(Column 1 x Column 2)
Portion of the
Distribution
Gains
(Column 1 x Column 4)
Portion of the
Distribution
Gains
(Column 1 x Column 6)
Portion of the
Distribution
Gains
(Column 1 x Column 8)
Portion of the
Distribution
Gains
(Column 1 x Column 10)
Portion of the
Distribution
Gains
(Column 1 x Column 12)
Portion of the
Distribution
Gains
(Column 1 x Column 14)
(From Your Year-End
Account Statement)
Eligible for Class B Rate
3/2002
$ 100
.2000
$ 20
.1500
$ 15
.2000
$ 20
.1500
$ 15
.1000
12/2002
$ 100
.1000
$ 10
.2500
$ 25
.1500
$ 15
.2000
$ 20
.1500
$ 200
Total:†
†Check
1
Eligible for Class C Rate
$ 30
Eligible for Class D Rate
$ 40
Eligible for Class E Rate
$ 35
Eligible for Class F Rate
$ 35
Eligible for Class G Rate
Subject to 5.3% Rate
$ 10
.1000
$ 10
.1000
$ 10
$ 15
.1000
$ 10
.0500
$ 5
$ 25
$ 20
$ 15
to make sure the total amount for each fund you list on your worksheet in Column 1 matches the total amount for each fund shown in Box 2a, Total Capital Gain Distributions, on your 2002 Form 1099-DIV.
Vanguard 2002 Long-Term Capital Gains Distributions Worksheet for Residents of Massachusetts
Column:
Month and Year
of Distribution
Vanguard Fund Name
Fund Number*
California Intermediate-Term Tax-Exempt Fund
0100
12/2002
California Long-Term Tax-Exempt Fund
0075
12/2002
Energy Fund
0051
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Long-Term
Capital Gains
Distribution
Portion of the
Distribution
Gains
(Column 1 x Column 2)
Portion of the
Distribution
Gains
(Column 1 x Column 4)
Portion of the
Distribution
Gains
(Column 1 x Column 6)
Portion of the
Distribution
Gains
(Column 1 x Column 8)
Portion of the
Distribution
Gains
(Column 1 x Column 10)
Portion of the
Distribution
Gains
(Column 1 x Column 12)
Portion of the
Distribution
Gains
(Column 1 x Column 14)
(From Your Year-End
Account Statement)
Eligible for Class B Rate
Eligible for Class C Rate
Eligible for Class D Rate
Eligible for Class E Rate
Eligible for Class F Rate
Eligible for Class G Rate
$
.0000
.0000
.0000
.0000
.0000
.0347
.1747
$
.2287
$
.0000
$
.0000
$
$
.0000
.0445
$
Subject to 5.3% Rate
.9653
.5521
3/2002
.0000
.1432
.0000
.3168
.0000
.5400
.0000
12/2002
.0000
.0000
.0000
.0000
.0000
.0000
1.0000
Florida Long-Term Tax-Exempt Fund
0018
12/2002
.2025
.2313
.0000
.0000
.0000
.0372
.5290
Global Equity Fund
0129
12/2002
.0000
.0000
.0000
.0000
.0000
.0000
1.0000
Heath Care Fund
0052
3/2002
.1766
.6772
.1462
.0000
.0000
.0000
.0000
12/2002
.0000
.0000
.0499
.0010
.0001
.0000
.9490
Insured Long-Term Tax-Exempt Fund
0058
12/2002
.0993
.0597
.0393
.0492
.0180
.2457
.4888
Intermediate-Term Bond Index Fund
0314
3/2002
.6924
.0443
.2627
.0000
.0000
.0006
.0000
Intermediate-Term Tax-Exempt Fund
0042
12/2002
.0778
.1813
.0681
.2028
.0229
.1460
.3011
Intermediate-Term Treasury Fund
0035
12/2002
.0230
.1696
.0000
.0000
.0000
.0002
.8072
Long-Term Tax-Exempt Fund
0043
12/2002
.0000
.0000
.0000
.0000
.0000
.0000
1.0000
Long-Term Treasury Fund
0083
3/2002
1.0000
.0000
.0000
.0000
.0000
.0000
.0000
12/2002
.0000
.0000
.0000
.0000
.0000
.0000
1.0000
Mid-Cap Index Fund
New Jersey Long-Term Tax-Exempt Fund
0859
0014
3/2002
.4484
.4183
.1333
.0000
.0000
.0000
.0000
12/2002
.0000
.0000
.0000
.0000
.0000
.0000
1.0000
12/2002
.0021
.0000
.0270
.0281
.0000
.1254
.8174
New York Long-Term Tax-Exempt Fund
0076
12/2002
.0000
.0000
.0000
.0277
.0074
.0006
.9643
Ohio Long-Term Tax-Exempt Fund
0097
12/2002
.1852
.0000
.0000
.0000
.0000
.4313
.3835
Pennsylvania Long-Term Tax-Exempt Fund
0077
12/2002
.0359
.0011
.0487
.0026
.1972
.2064
.5081
Short-Term Bond Index Fund
0132
3/2002
.4336
.3091
.1744
.0825
.0000
.0004
.0000
Short-Term Treasury Fund
0032
12/2002
.0171
.0000
.0000
.0000
.0000
.0000
.9829
Small-Cap Value Index Fund
0860
3/2002
.7581
.1458
.0961
.0000
.0000
.0000
.0000
Total Bond Market Index Fund
0084
3/2002
.5475
.2322
.0527
.0858
.0145
.0673
.0000
*Although the fund numbers shown are for Investor Shares, this information applies to all share classes in a fund (including Investor, Admiral™, Institutional, and VIPER® Shares).
2
3
$
instructions
How to Use This Worksheet
To determine how much of your Vanguard fund distributions is eligible for the various Massachusetts long-term capital gains
tax rates, follow these steps:
Step 1.
Fill in the long-term capital gains distribution amounts, by fund and by date of distribution, in Column 1 of the
worksheet on pages 2 and 3. These amounts can be found on your year-end account statement.
Step 2.
For each fund you received long-term capital gains distributions from in 2002, multiply the dollar amounts in
Column 1 by the factors in Column 2, and then enter the products in Column 3. The dollar amounts in Column 3
are the amounts of your long-term capital gains distributions that qualify for the Class B rate.
Step 3.
Multiply the dollar amounts in Column 1 by the factors in Column 4, and then enter the products in Column 5.
The dollar amounts in Column 5 are the amounts of your long-term capital gains distributions that qualify for the
Class C rate.
Step 4.
Step 5.
Step 6.
Step 7.
Step 8.
Multiply the dollar amounts in Column 1 by the factors in Column 6, and then enter the products in Column 7.
The dollar amounts in Column 7 are the amounts of your long-term capital gains distributions that qualify for the
Class D rate.
Multiply the dollar amounts in Column 1 by the factors in Column 8, and then enter the products in Column 9.
The dollar amounts in Column 9 are the amounts of your long-term capital gains distributions that qualify for the
Class E rate.
Multiply the dollar amounts in Column 1 by the factors in Column 10, and then enter the products in Column 11.
The dollar amounts in Column 11 are the amounts of your long-term capital gains distributions that qualify for the
Class F rate.
Multiply the dollar amounts in Column 1 by the factors in Column 12, and then enter the products in Column 13.
The dollar amounts in Column 13 are the amounts of your long-term capital gains distributions that qualify for the
Class G rate.
Multiply the dollar amounts in Column 1 by the factors in Column 14, and then enter the products in Column 15.
The dollar amounts in Column 15 are the amounts of your long-term capital gains distributions that qualify for the
5.3% rate.
Important Tax Information for 2002
Long-Term Capital Gains Worksheet
for Residents of Massachusetts
A recent change in Massachusetts law has established a single 5.3% rate for all long-term capital gains realized on or
after May 1, 2002. (Because of this, Vanguard will not need to send you this type of worksheet for tax years 2003 and
beyond.) Note that the long-term capital gains rate you are eligible for or subject to is dependent on when the fund
sold the securities for a gain, not when that gain was distributed to you. This means some of your gains, even though
paid to you on or after May 1, 2002, may be eligible for the lower rates if the securities were sold prior to that date.
The long-term capital gains distributions you received from Vanguard® funds in 2002 may be eligible for any number
of the classes and tax rates listed below. Use the worksheet on pages 2 and 3 to determine the amounts to report on
your Massachusetts income tax return; step-by-step instructions are provided on page 4.
For long-term capital gains realized between January 1, 2002, and April 30, 2002. Report these gains in the following six classes
(each of which is followed by the corresponding Massachusetts long-term capital gains tax rate):
• Class B represents property held more than one year but not more than two years (5%).
• Class C represents property held more than two years but not more than three years (4%).
• Class D represents property held more than three years but not more than four years (3%).
• Class E represents property held more than four years but not more than five years (2%).
• Class F represents property held more than five years but not more than six years (1%).
• Class G represents property held more than six years (0%).
For long-term capital gains realized on or after May 1, 2002. Report these gains at a rate of 5.3%.
To determine the dollar amount eligible for each class, multiply the amounts of the 2002 distributions you received
from Vanguard funds (the amounts you received are listed on your 2002 year-end account statement) by the factors
listed in the table for each fund and class. Then total the dollar amounts for each class, and enter those amounts on
Schedule D of your Massachusetts income tax return.
Step 9.
Total the dollar amounts listed in Column 3 (Class B), and then enter the sum on your Massachusetts income tax
return, Schedule D, Part 1, Line 5, Column A (along with any Class B long-term capital gains distributions you
may have from other sources).
Step 10.
Total the dollar amounts listed in Column 5 (Class C), and then enter the sum on your Massachusetts income tax
return, Schedule D, Part 1, Line 5, Column B (along with any Class C long-term capital gains distributions you
may have from other sources).
Note: This worksheet helps you compute only the amount of your Vanguard fund distributions eligible for the different
long-term capital gain tax rates. You may have income from other sources that is also eligible for or subject to these
various tax rates.
Step 11.
Total the dollar amounts listed in Column 7 (Class D), and then enter the sum on your Massachusetts income tax
return, Schedule D, Part 1, Line 5, Column C (along with any Class D long-term capital gains distributions you
may have from other sources).
Additional Information
Step 12.
Total the dollar amounts listed in Column 9 (Class E), and then enter the sum on your Massachusetts income tax
return, Schedule D, Part 1, Line 5, Column D (along with any Class E long-term capital gains distributions you
may have from other sources).
• If you have questions about the information provided in this tax update, call our Investor Information Department
at 1-800-662-7447. Note, however, that our associates cannot provide tax advice; if your tax situation is complex or
if you are uncertain about the interpretation of a specific rule, we recommend that you seek advice from a qualified
tax professional.
Step 13.
Total the dollar amounts listed in Column 11 (Class F), and then enter the sum on your Massachusetts income tax
return, Schedule D, Part 1, Line 5, Column E (along with any Class F long-term capital gains distributions you
may have from other sources).
• To request a copy of your year-end fund account statement, call us at 1-800-662-2739 or access your statement
anytime by logging on to www.vanguard.com.
Step 14.
Total the dollar amounts listed in Column 13 (Class G), and then enter the sum on your Massachusetts income tax
return, Schedule D, Part 1, Line 5, Column F (along with any Class G long-term capital gains distributions you
may have from other sources).
Step 15.
Total the dollar amounts listed in Column 15 (Subject to 5.3% Rate), and then enter the sum on your Massachusetts
income tax return, Schedule D, Part 2, Line 5 (along with any other gains realized on or after May 1, 2002, you may
have from other sources).
4
• You can also find a wide array of general tax-preparation data and tools in the Tax Services area of our website.
© 2003 The Vanguard Group, Inc. All rights reserved.
CGMA 012003