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I have some tax exempt interest that is also state tax exempt, but other that is only federal exempt. How do I enter which the two amounts?

Forum|Forum|7 years ago
June 1, 2019
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TurboTax Basic Online

Best answer by Hal_Al

If they are on separate 1099-INT (or 1099-Div) you enter them separately and follow the interview. For the federal only, you check the box “I earned tax exempt dividends in more than one state” on the first screen after entering the 1099-INT or 1099-DIV. Then select "More than one state" at the bottom of the state scroll down list. For the one that is state exempt, you select the proper state.

If you have only one 1099 and your mutual fund company provided you a breakdown, you are only interested in your home state*. Multiply the % for your state by your total tax exempt dividends to get a $ amount (you can't enter the % in TurboTax [TT]). When asked which state, check the box "I earned tax exempt dividends in more than one state". In the drop down menu, select your state and enter the $ amount you calculated. In the 2nd box, select "More than one state" (at the bottom of the scroll down list) and enter the remaining dollar amount.

*Your state will tax all the dividends except the dividends from municipal bonds from your state.

Hal_Al

Employee

If they are on separate 1099-INT (or 1099-Div) you enter them separately and follow the interview. For the federal only, you check the box “I earned tax exempt dividends in more than one state” on the first screen after entering the 1099-INT or 1099-DIV. Then select "More than one state" at the bottom of the state scroll down list. For the one that is state exempt, you select the proper state.

If you have only one 1099 and your mutual fund company provided you a breakdown, you are only interested in your home state*. Multiply the % for your state by your total tax exempt dividends to get a $ amount (you can't enter the % in TurboTax [TT]). When asked which state, check the box "I earned tax exempt dividends in more than one state". In the drop down menu, select your state and enter the $ amount you calculated. In the 2nd box, select "More than one state" (at the bottom of the scroll down list) and enter the remaining dollar amount.

*Your state will tax all the dividends except the dividends from municipal bonds from your state.

Hal_AlAnswer

Employee

If they are on separate 1099-INT (or 1099-Div) you enter them separately and follow the interview. For the federal only, you check the box “I earned tax exempt dividends in more than one state” on the first screen after entering the 1099-INT or 1099-DIV. Then select "More than one state" at the bottom of the state scroll down list. For the one that is state exempt, you select the proper state.

If you have only one 1099 and your mutual fund company provided you a breakdown, you are only interested in your home state*. Multiply the % for your state by your total tax exempt dividends to get a $ amount (you can't enter the % in TurboTax [TT]). When asked which state, check the box "I earned tax exempt dividends in more than one state". In the drop down menu, select your state and enter the $ amount you calculated. In the 2nd box, select "More than one state" (at the bottom of the scroll down list) and enter the remaining dollar amount.

*Your state will tax all the dividends except the dividends from municipal bonds from your state.