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March 1, 2020
Question

MY HUSBAND AND I RECEIVED EXEMPT-INTEREST DIVIDENDS FROM 3 BOND FUNDS FROM USAA. TURBOTAX WANTS A LIST OF STATES WHERE THESE DIVIDENDS ARE FROM. USAA ONLY HAS INFO ON ONE OF THESE 3 BOND FUNDS. USAA NOT ANSWERING PHONE ON SUNDAYS. HELP!

  • March 1, 2020
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    1 reply

    SteamTrain
    Employee
    March 1, 2020

    Go to the end of the list of states in the top box, and instead of one state, select select "Multiple States"  for the entire amount and move on.  All states will accept that selection....and you can move on

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    IF you check the second box, to break out individual states, (and only if  you do not live in CA, or MN or IL) ....  then you only break out your home state, and any US Territory bonds...all else are lumped together as "Multiple States"  (Online software) or "More than one state"  (desktop)    ...see below.  BUT you do have to calculate the proper amounts yourself...so yo cannot do it unless you have the detailed data form the provider.

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    Doing the full breakout is sometimes a wasted effort.

     

    Example:  Say I have $1000 of exempt interest in box 11 of a 1099-DIV form.  And from the Fund documents, I calculate that  2% came from my state (NC). That's $20 for NC and $980 for Multiple states.  I saved myself $1 in NC  taxes by doing the calculation & break-out, since NC taxes at ~5% if the $20.   

    (Now if you have multiple bond funds, you have to calculate the exact $$ amount for each fund and add them together....spreadsheet or paper and  calculator.  )

     

    ____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*