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Deductions & credits
Well, if it were me, I'd just pick Puerto Rico for all of the US Territory amount, as the is the most likely Territory they would have bonds for anyhow. If the state ever Audited you, it would likely be either random, or for something else entirely and you would show them what breakdown the Fund provided, and the state would probably accept it since any territory gets the state exemption.
But if the actual $ amount was small (say, under $40 or so) , and you are uncomfortable with that, you could just lump it in with the other states and take the hit. ($40 of territory interest, taxed at 5% by the state, would be an extra $2 of state taxes...not enough to get excited about)
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
‎February 28, 2022
11:02 AM