I live in California. This year I received tax-exempt interest from a variety of municipal bonds. My CA tax form is asking me how much of this interest is from "funds with less than 50% of their assets invested in California and US obligations".
Here's the info on my tax-exempt interest from my brokerage's 1099-INT:
State of residence (CA)
Other states
Two questions:
1) Is the proper amount to report on my CA tax form as "less than 50% tax exempt interest" 4,621 (6299 minus 1678)?
2) Does it matter that these are individual bonds instead of "funds"?
You'll need to sign in or create an account to connect with an expert.
I figured it out. The line I referred to (Line C) should only have interest from mutual funds. The place I was looking for to enter other CA-taxable interest from muni bonds is actually Line E. Then you add C+E to get the total amount of CA-taxable interest.
If a mutual fund has less than 50% California tax free obligations none of the interest is exempt. If more than 50% then that percent is tax exempt. If an individual bond is not a California tax free investment none of the interest is tax exempt.
I figured it out. The line I referred to (Line C) should only have interest from mutual funds. The place I was looking for to enter other CA-taxable interest from muni bonds is actually Line E. Then you add C+E to get the total amount of CA-taxable interest.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
ale-carrasco87
New Member
COSBO
Level 1
edent508
Level 2
DaveFrick
Level 2
E-Rich333
Level 1