Thank you very much for the reply BaldieTax! If I understand this correctly, open up the 1099-DIV, locate the Security and the Subtotal that was paid for that, reference the Exempt Tax letter for the Income from Federal Obligations and multiply that percentage by the subtotal to get the amount exempt?
Example: Security Subtotal = $1,000.00, Income from Federal Obligations = 94.19% (Thus 5.81% is taxable at the state level)
So, $1,000.00 * .9419 = $941.90 is exempt from State Tax and entered into the "U.S. government interest, if any, included in box 1a" field in the 1099-DIV.
BTW, you were correct - going into forms mode and finding the box on the 1099-DIV under 1a is much easier!
Is there a minimum percentage that the fund needs to be exempt for you to report this?
Thanks again!
