Investors & landlords

@jwbonds 

.....If you are filing a tax return for either of those states, then, in the software, you would need to break out the box 8,9, and 13 values for the state you are filing a tax return for...and report it in its own 1099-INT (from the same broker.)

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Furthermore, when you have any accrued interest to report (subtract) for what you paid the seller of a Muni bond you bought in 2022.....and if there are box 1 or box 3 $$ on the same 1099-INT, then all of the box 8,9 & 13 $$ must be removed and reported on a separate 1099-INT form(s).

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Example:  As a NY resident

Say I have a 1099-INT from an account at Schwab, that contains $$ in boxes 1, 8, 11 &13.

Box 8 & 13 represent income from various state Muni bonds bought over the years, but also an IL bond I bought in 2022 with accrued interest, and a NY bond with accrued interest bought in 2022.

I would need to create 3 different 1099-INT forms for my tax return

1)  One with only the box 1 & 11 $$

2) Another with the box 8 & 13 $$ from the NY purchased bond...& then it's accrued interest.

3) Another with any remaining box 8 & 13 $$...and the accrued interest for the IL bond (note...I'm not filing in IL, so the IL $$ can be mixed in with the other Munis I might hold.)

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There really isn't any other clear way to do this , other than to create separate 1099-INT forms (in the software).

And the point I made about removing the Muni $$ from the combined 1099-INT when there are box 1 $$ in it? That also applies if there are box 3$ on it.....the issue there is that the Accrued interest that you paid the seller of the bond?  That gets applied proportionately to the box 1, 3 & 8 values if all is left on the same 1099-INT.   A really subtle complication that gets past many folks.

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Buy a Corporate bond with accrued interest paid the seller?  Same thing.. put all the box 1 & 11 $ on it's own 1099-INT before entering the accrued interest for that bond on that new 1099-INT.

Buy a Treasury bond with accrued interest paid the seller?  Same thing.. put all the box 3 & 12 $ on it's own 1099-INT before entering the accrued interest for that bond on that new 1099-INT.