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MNDutch42
New Member

Tax Exempt Problem with 1099-DIV line 11

I have a 1099 with only one entry - line 11.  Additional information from the issuer is that the funds are
from 3 sources, the U. S Government, my state (MN), and other states.  $T = $US + $MN + $OS.
When I enter the amount on line 11 and select continue I check the box for "A portion of these dividends is U.S. Government interest."  I then click continue.  On the next page I enter the amount from U.S. Government obligations - $US.  I click continue.  On this page I enter the amount from my state, $MN, and the More Than One State amount, $OS.  I click done.  At this point TT indicates I have entered the amounts incorrectly (Let's Check Your Tax-Exempt Entry).  It says that $MN + $OS does not equal $T.  It seems to have forgotten that I checked a portion was for the U. S. Government and the amount $US that I entered.  What am I doing wrong?

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2 Replies
JohnB5677
Expert Alumni

Tax Exempt Problem with 1099-DIV line 11

All of Box 11 is Exempt Interest, and the amount in Box 11 should match exempt US interest.  Let's say that was $1,000.

 

I'm sure you found the drop down box that gives you the individual states and All other states.  The total of both of these has to equal the US total of $1,000.

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Tax Exempt Problem with 1099-DIV line 11

@MNDutch42 

 

1)  There is no US bond interest in box 11 of a 1099-DIV form.....that box is for states and US territories only.

 

2) based on MN tax laws, unless  95% of  the interest came from MN bonds, then you can not break out MN $$ at all from a 1099-DIV form.  So unless you owned a MN-Only bond fund, you should just tag ALL of box 11 as "More than one state".   https://www.revenue.state.mn.us/dividends-mutual-funds

 

(The same does not apply to box 8 on a 1099-INT...if, big IF, if You actually own individual MN bonds too....but box 8 on a 1099-INT is only used for individual bonds and not mutual funds)

 

3) The selection of "A portion of these dividends is U.S. Government interest."  can only be used if you have $$ in box 1a of a 1099-DIV, and that break-down only refers to a sub-part of box 1a of the 1099-DIV.   IF your 1099-DIV has no box 1a $$, then either you, or the Issuer made a mistake on the -DIV form?...or perhaps the issuer moved the box 1a&1b values to a separate 1099-DIV form?

 

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

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