State tax filing
When you enter your 1099-DIV, with all its data in the proper boxes....you will continue thru follow-up pages to one that asks for more info about the exempt interest shown in box 11 .
In the first picture below.....you can avoid extra work by just selecting "Multiple States" in the very first selection area, and then move on from there........or go to the second picture below, to see the other option.
__________________________________
_____________________________________
Now, if the box 11 amount is substantial, "sometimes" you can get a bit of a state tax break, by singling out the exempt interest that came from your own state's bond. BUT...you have to calculate the exact amount from PA bonds based on additional information the Mutual fund, or brokerage provided somewhere separate from your 1099-DIV form itself. IF you can't find that info, or it isn't worth your effort...then you use the first picture above and move on
_________________________
Example below would be for a NC resident:
_________________________________
SO...if you do break out your PA exempt interest...like above. Say you have $1000 in box 11 from just one mutual bond fund. And the Mutual fund indicated that 2% was from PA bonds. 2% is $20, so if you break out that $20, you might save yourself 60cents in PA taxes, since PA would have taxed that $20 taxes at ~3%.
Thus you can see that either box 11 has to be a big number....or the % held in PA bonds would have to be pretty large to make your work here effective . I checked a bunch of Fidelity bond funds....the highest had ~9% of it's distribution from PA bonds.. ...down to the lowest at 1% .
