Do not know which state exempt-interest dividends from

Forum|Forum|4 years ago
March 7, 2022
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LeonardS

Level 14

Could please clarify your question and provide more information?

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Mike9241

Level 15

only the fund can provide that info. however, be aware while exempt for regular federal income tax proposes they may not be exempt for alternative minimum tax purposes nor may they be exempt in the state of issuance.

SteamTrain

Level 15

IF, on a 1099-DIV (box 11) and If the $$ amount is not great (over ~$1000), the easiest solution is you go to the very end of the state list and select "Multiple States". You also do that selection if you live in a state that does not have an income tax

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IF you live in a state with an income tax, and IF you want to break out your own state's bond exempt-interest, you need to get the Brokerage/Mutual Fund's breakdown before you can even think of trying to save any state taxes.

Example: You live in NC, box 11 on the 1099-DIV is $1000- (and came from only one Bond Mutual Fund and yoru fund indicates that 2% came from NC bonds. 2% of $1000 = $20. IF you break out that $20 of NC-specific tax exempt $$, you save yourself a whole $1 in NC taxes.....big whoop. But if box 11 contains $$ from several funds, then you have to calculate the $$ for each separately.

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