I know I need to report income from interest earned on Out of State Municipal obligations on my Indiana taxes.
The question i what is the number I report. I get a 1099- INT with the Tax free interest for my federal taxes. Bu there is also a Bond Premium number on that 1099-INT that reduces to actual amount of tax free interest that goes into Line 2a of the 1040. here's an example in round numbers:
Total tax free interest on 1099-INT Box 8 $10000
Bond Premium total 1099-INT box 13 6400
Total tax free interest on Form 1040 line2a 3600
Is the $3400 the amount I report on my Indiana IT-40 Schedule1?
I would think since the total Interest reported to Fed's is reduced by the Bond Premium, the then amount reported to Indiana would be calculated the same way. Indiana Dept of Revenue was of no help.
Thanks in advance...
