1099 DIV BOX 12 exempt interest dividend for determining state exemption

Forum|Forum|1 year ago
February 19, 2025
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Hi everyone,

I have been researching about inputing the exempt-interest dividends state distribution on Turbotax desktop. I live in CA. I had $584.22 on 1099-DIV BOX12 and $74.88 on BOX13.

I am confused about inputing the page below,

For example all $584.22 is from one bond, supplement document below:

Shall I do math $584.22 x 5.74% = $33.53 ? Then entering $33.53 into Exempt-interest dividend amount for CA? Entering $550.69 for "Multiple states"?

But I saw on other post that California doesn't allow me to break out the CA dividend unless the bond fund contains at least 50% of it's assets in CA or US Bonds. For my above chart, CA is less than 50%.

Link: https://www.ftb.ca.gov/forms/2024/2024-540-ca-instructions.html#:~:text=Certain%20mutual%20funds,FTB%20Pub.%201001.

So what should I input for that page? Thank you for your answer.

Ask the Experts - Deciphering - Feb 2025

FGYYDSAuthor

Could an tax expert answer my question? Thanks.

DawnC

Employee

Enter the full amount on one line/from one state, as multiple states.

The dividends/interest reported here won't be taxed on your federal return. However, most states tax dividends/interest paid by another state.

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ccarbon

I have an amount in Box 12 on the 1099-DIV and part of that is not taxable in my State. I have checked the box which says I have earned exempt income in more than one state, and then broke out the state portion that is exempt in my state and putting the rest in Multiple states. However the entire amount is flowing to my state return as exempt. This is not correct. I only want the exempt portion for my state to flow here. Please advise

RobertB4444

You may have to overwrite the amount to get the correct amount to flow through to your state. When you go through the walkthrough it should ask you about the exempt dividends. You can enter the taxable amount manually at that point.

@ccarbon

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