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October 2, 2021
Question

Where do i enter the list of payors required for Non-Arizona Municipal Interest shown on Arizona Form 140, line 13?

  • October 2, 2021
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1 reply

Hal_Al
Employee
October 2, 2021

You don't enter the names of payors anywhere on the AZ tax form.  You only enter the payor's name, in TurboTax (TT), on the form 1099-DIV or 1099-INT. 

 

You do breakdown the interest in box 8 of form 1099-INT and box 11 of form 1099-DIV, between AZ and non AZ interest, but only on a TT worksheet, not on the AZ form 140. 

 

You get the breakdown  from your mutual fund company. If they did not provide a breakdown, you check the box “I earned tax exempt dividends in more than one state” ("Multiple States" in the  online program) 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.

If your mutual fund company provided you a breakdown*. 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.

See screen shots at https://ttlc.intuit.com/community/state-taxes/discussion/do-i-enter-the-state-in-which-i-live-in-regarding-the-earned-exempt-interest-dividends-in-for-the/00/2074410

 

*Most mutual funds will provide a breakdown. But you usually have to ask for it, or find it on their web site.

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