Investors & landlords

...............However, if your state has an income tax, and if box 12 is pretty large, you can sometimes reduce your state taxes by indicating what portion of box 12 came from bonds issued by your own state (Also any US Territories, like Puerto Rico).  To do that calculation, you need to get that information from whatever brokerage issued the 1099-DIV.   IF you can't get that, then you just mark it all as coming from "Multiple States". 

 

 (Also, Illinois does not allow a breakout for IL bond interest on a 1099-DIV, and CA & MN have minimum % state bond holding requirements before they allow you to break out those state's bond interest )

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Example:  For a NC resident....If box 11 is $1000 and comes from just one fund.....and 2% came from NC bonds, I could break out NC interest (2% of $1000 = $20) form the rest and save myself (maybe) $1 in NC taxes since NC would-have taxed that $20 at ~5%

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