Question

US bond income exempt from federal taxation

Forum|Forum|5 years ago
March 13, 2021
2 replies
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Does US bond income exempt from federal taxation include state, county, and municipal bonds, or does it only include US Federal Government bonds?

Not A Product Question

SteamTrain

Employee

where do you see "exempt from federal taxation" ?

US govt bond interest is not exempt from Federal taxation.

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if it really says exempt from state taxation.....then

NO...that specifically refers just to US Govt bonds.

IF on a 1099-DIV form, it refers to a sub-part of the box 1a $$ that are showing on the -DIV form.

the "Muni"s you are referring to go into box 11 of a 1099-DIV.

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

D

dhanig2Author

While doing my Virginia income tax, Turbotax has a whole category entitled "U.S. Bond income exempt from federal taxation" that Turbotax says is treated differently by Virgina than by the Federal Government. I do have income from municipal bonds from other states, but no income from Federal Government bonds, so I want to know whether I should enter the figures into the boxes provided by the Turbotax program.

SteamTrain

Employee

Sorry, I don't have the VA Software to check to see what VA is doing there. Might be worded improperly, or may be something special in the VA interview.

@DJS are you around and working on VA this year? Is this something special in the VA interview......the wording about US Govt Bonds being "exempt" from federal taxation seems wierd...or just plain wrong.

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

A

allenkski111

I also was wondering about this question, two years later. @dhanig2 was correct about the odd wording in the VA state tax interview question. Wish TT would revise it.