Question

Question about 1099-DIV BOX12 entering Exempt-interest dividend amount

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

I have been researching about inputing the exempt-interest dividends state distribution on Turbotax desktop but I am still confused after reading your replies at other post @SteamTrain . 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"?

It will be kind of everyone who reply my post. Thank you!

SteamTrain

Employee

@FGYYDS

That is correct BUT

(Huge BUT)

For CA $$ received from bond fund collections, CA doesn't allow you to break out the CA $$ unless the bond fund contains at least 50% of it's assets in CA or US Bonds. That does not appear to be even close for the bond fund you indicated. Thus, all of the tax-exempt $$ must be assigned as "Multiple States"

That's one of the reasons that some fund companies have created CA-only bond funds.

__________________________

The same is not true if you hold individual CA Muni bonds.......those can be broken down as you noted...but when you hold individual bonds, those $$ are reported in box 8 of a 1099-INT.

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