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February 27, 2025
Question

My 1099-DIV statement doesn't list the state codes where they are from. They are just state exempt. They are only federally taxed. Where do I mark this in TT?

  • February 27, 2025
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    1 reply

    SteamTrain
    Employee
    February 27, 2025

    @heatherchristinechase 

     

    You EDIT the 1099-DIV, and on a page AFTER the main form, the software asks which state's bonds the $$ came from.

     

    1)  You can either select the top bullet point and scroll down the list and select "Multiple States" for all of it.

    or

    2)  If you live in a state with an income tax, you can, but are not required to, break out the $$ amount from your home state (and any US Territories).  To do that, you would select the second bullet point, and you have to calculate the exact $$ amounts yourself.  BUT...even so, you only calculate you own state's $$ (and any US Territory $$), and the remainder is all lumped together as one $$ entry as "Multiple States".   

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    (But there are special rules for UT residents....also CA & MN residents have limits for doing this for exempt $$ on 1099-DIV forms.  IL residents can't break out IL exempt $$ on a 1099-DIV....but can on 1099-INT forms)

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    See pictures below as an example for an NC resident:

    ....Note: if the $$ amount from your own State+US territories is less than ~$50, it's usually easiest to just use option #1.....(i.e. eliminating $50 in income for a state with a 5% tax would save you 2.50 in state taxes)

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