Arizona Municipal Interest help, please

[DanaJW]

Hello,

When I get to the TurboTax state page titled Arizona Municipal Interest, it says I entered a dollar amount of non-Arizona municipal interest that I know is found on my 1099-DIV, Line 12.  

At the bottom of this Turbo Tax page, there are two Empty boxes. Do I enter this dollar amount in either of those boxes? That dollar amount from the 1099-DIV, Was automatically entered when I uploaded my tax forms from my financial institution.

Once I get to the next page, which is to provide a “schedule of non-Arizona municipal interest,” it wants payors.  Because I assume this dollar amount was from mutual funds, should I put miscellaneous under Payor Name and put the dollar amount from my 1099-DIV, line 12 in the amount box?

This is the only hiccup keeping me from filing my taxes. When I go to the state review, it wants me to check form 140 line 13 and it says it requires a schedule listing the payers and the amount received from each pay.

I realize similar questions have been asked before, but I am still suffering from confusion.

Thank you in advance

[RogerD1]

It depends on the type of municipal bond interest that you received and whether you had expenses related to the Arizona Municipal Interest.  The top box is for expenses related to this interest income that you didn't deduct on your Federal return.  The bottom box is for Arizona Municipal Interest that was Federally taxed - an example of Federally taxable municipal bond interest would be interest earned on private activity bonds which are used to fund projects such as stadiums for sports teams.  Both of these instances are uncommon, but it would be worthwhile to check if either of those apply to you.  If neither apply, they can both be left blank.

On the "Provide Schedule of Non-Arizona Municipal Interest" page, the Payor would be the issuer of the 1099-DIV statement and only the non-Arizona Municipal Interest gets reported in the Amount column.

Line 13 on Arizona Form 140 relates to Small Business Income.  Did you have self-employment income, or income reported to you on a K-1?  And did you file the Form 140-SBI when you prompted in TurboTax?  It sounds like you may be needing to input the payors of the small business income that you received on the form in question.  If you're still stuck with that form, please provide as much detail as possible about what you are seeing regarding that form and that will help us to better help you through it.

[DanaJW]

Thank you for your response. I was in error when I said line 13 on form 140. On form 140, it’s actually line 15 I’m talking about. Line 13 is from my 1099 – DIV.  

After much reading and your response, I think I have figured out the problem.

Thank you