State tax filing

Yeah...this has happened occasionally to a few others...usually for NY tax returns....but now wondering if PA has the issue too.

 

What they did to fix it  (for your situation) was to subtract out just the PA $$ in boxes 8, 9, & 13 on the 1099-INT that was for PA bonds, and create a new 1099-INT with just those PA $$....and use the top selection on the follow-up page to assign it all to PA.  (The "What state is this exempt interest from?" page)

 

Then on the former 1099-INT, that no longer has any PA Muni bond $$ on it....the top selection is again used...but assign all to "Multiple States".....the last "state" on the pop-up list.

 

That worked for them.  TTX may eventually fix the problem...but who knows when, and this "workaround" seems to work.

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Separate from your PA issue

A warning on "Accrued Interest" though.  IF any 1099-INT has $$ in any 2 of boxes 1,3, &8 on it, and you need to declare the accrued interest you paid the seller for a bond you bought......you need to put the bond type that needs the accrued interest declared..on it's own 1099-INT.  Otherwise, the accrued interest will be applied proportionally the $$ shown in boxes 1,3,&8.

 

Example:  a 1099-INT with $500 in box 1, and $500 in box 8.  IF you have $100 of Muni accrued interest to declare,, and don't separate out the Muni $$ into it's own 1099-INT, the $100 will be applied improperly as $50 to box 1 and $50 to box 8.

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Thus, for any particular bond type, for which you need to declare accrued interest paid out.

 

All $$$ of Boxes 1 &11 would go in it's own 1099-INT for accrued interest on corporate bonds.

All $$$ of Boxes 3 &12 would go in it's own 1099-INT for accrued interest on Treasury bonds.

All $$$ of Boxes 8,9, &13 would go in it's own 1099-INT for accrued interest on Muni bonds.

 

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

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