Question

Is Interest on Muni Bonds from out of Indiana bonds taxable Indiana income if bond was acquired Jan 1, 2012 to Dec 30 2012.?

Forum|Forum|4 years ago
April 4, 2022
1 reply
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Doing my Indiana state tax return Turbo Tax ON DEMAND TAX GUIDANCE says Interest Out of state bonds is taxable income if bond acquired after 12-31-2011, and NOT TAXABLE if acquired before 12-31-2012. Contradictory statements. What is true?.

TurboTax Online

AmyC

Employee

You are referring to page 13, IT-40 Booklet which sates: Line 3 – OOS Municipal Obligation Interest Add-Back Interest earned from a direct obligation of a state or political subdivision other than Indiana (out of state, or OOS) is taxable by Indiana if the obligation is acquired after Dec. 31, 2011. Interest earned from obligations held or acquired before Jan. 1, 2012, is not subject to Indiana income tax and should not be reported as an add back.

In English, interest from a non-IN obligation is taxable if purchased 2012 or later.

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E

ejm7Author

In English.. I am referring to the TURBOTAX INFO in my Turbotax. Based on your input, the Turbotax help should use the date JAN 1 2012 instead of Dec 31 2012. That makes sense, the Turbotax help information is in error.