State tax filing

...And here's how you would do it if you did have a lot of $$ from your home state.  You only break out your resident state, any US Territory bonds, and the remaining amount is lumped, "Multiple states".  An example for a NC resident, for box 11 $$ on a 1099-DIV:  (the checkbox on the "Tell Us More..." page is only checked if you want to do the break-out)

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1099-DIV_TaxExempt_State_1_Online.png

 

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But as another example.  Say your box 11 on the 1099-DIV is $1000.   And the info from your fund indicates that 2% came from your state.  2% of 1000 = $20.  SO I could reduce my state income by $20 by doing the breakout, and save myself $1 in state taxes (at 5% state tax rate).  But you have to do the proper calculations yourself to get that $20 value.....and MN and CA don't allow the breakout from a mutual fund collection of bonds unless the Fund holdings contain more than 50% of that particular state's bonds.  (and IL doesn't allow a breakout at all from a mutual fund)

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