topic municipal bonds tax exempt in Investors & landlords

municipal bonds tax exempt

dougie3 — Sat, 28 Mar 2020 00:37:38 GMT

I sold some municipal bonds last year. I received a list of the funds I sold with the percent derived in my home state of Wisconsin. These percent amounts were not available when I imported my 1099-B from my broker to my Turbo Tax return. Where in Turbo Tax do I enter the % derived?

Re: municipal bonds tax exempt

DavidS127 — Sat, 28 Mar 2020 17:51:45 GMT

You figure the percentage applicable to Wisconsin, and that much is not taxed by Wisconsin. The remainder of the tax exempt income is taxed by WI (not by the IRS).

So, what you must do is "add back" the total tax exempt amount minus the not taxed by Wisconsin. You do that during the state tax return interview questions. There is a section for Additions to the federal adjusted gross income (AGI) and you put the amount taxed by WI in that section or in response to a question in that section.

Re: municipal bonds tax exempt

dougie3 — Tue, 31 Mar 2020 22:10:49 GMT

Thank you David you were spot on with your advise.