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April 9, 2023
Question

Why does my tax exempt interest for federal not get reduced for my state form if I have broken out the amounts ?

  • April 9, 2023
  • 1 reply
  • 0 views
listed multiple state amount and then WI amount

1 reply

SteamTrain
Employee
April 9, 2023

@strawm 

I don't know if the WI forms handle it differently.

 

...BUT...occasionally a couple other folks have reported this as not working quite right (though seems to work right for me)

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It isn't supposed to be necessary to do this, but what finally worked for them was to actually remove their own state $$ from that single combined form, and put them on a separate 1099-INT from the same provider.

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Example:  $1000 in box 8 of a 1099-ITN and $200 from Wisconsin Muni bonds.

1) Reduce box 8 on the original 1099-INT by $200, leaving $800...designated as ALL being from "Multiple States"

2) Create a new 1099-INT from the same provider with the $200 in box 8, and designate it all from WI Muni bonds.  (note: IF there are box 9, or box 13 $$ on a 1099-INT...related to those WI bonds...those $ should also be moved to the new 1099-INT.)

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IF you are actually dealing only with the box 12 $$ on a 1099-DIV form...you would do the same thing...move just the box 12 $$ related to the WI portion, to its own newly created 1099-DIV with just those box 12 WI-$$.

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See if that works.

 

 

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