Calculating amount for CA less than 50% tax exempt

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)

Tax-exempt interest: 950
Accrued interest paid -44
Bond premium- covered lot -461

Other states

Tax-exempt interest 6299
Accrued interest paid -2341
Bond premium- covered lot -1678

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"?

4442

1 Best answer

Level 2

Mar 30, 2024 2:12:35 PM

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.

Level 15

Mar 30, 2024 8:45:03 AM

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.

Level 2

Mar 30, 2024 2:12:35 PM

Why sign in to the Community?

Calculating amount for CA less than 50% tax exempt