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June 7, 2020
Question

My 1099 reports $600 for Tax Free Interest for ALA. Your program tells amount entered does not match. Why?

  • June 7, 2020
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1 reply

Hal_Al
Employee
June 7, 2020

 

Tax free interest is shown in box 8 of a 1099-Int (or box 11 of a 1099-Div).  At the first 1099-int screen, you may have to check the box "My form has info in more than just box 1"  to get to box 8.

At the screen "Tell us if any of these uncommon situations apply", check "None of these apply" (do not check the box  "My state doesn't tax all this interest"). You will reach a follow up screen where you identify the state the tax exempt interest is associated with.  If all the amount in box 8 is not for AL, select Alabama and enter the AL amount on line 1. Enter the remaining amount on line 2 and select  "More than one state" (scroll down to the bottom of the list of states), unless you know the names of the other state(s) the interest is allocated to.