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msmyth
New Member

How do I enter Tax exempt muni's taxable to Indiana? I followed the screens, but it's not showing up on Indiana return as an add-back.

 
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Accepted Solutions
BMcCalpin
Level 13

How do I enter Tax exempt muni's taxable to Indiana? I followed the screens, but it's not showing up on Indiana return as an add-back.

When you enter on the federal return the tax-exempt interest, you need to make sure that you enter it in box 8 on the 1099-INT input screen. This requires you to check the box "There is more information than just in box 1" (paraphrase). Then on a subsequent screen, you will be asked from what state the munis come (in my test, I chose New York).

Then go to your Indiana interview. After a few screens, you should see a screen entitled "Interest on Out-of-State Municipal Obligations". You can enter the amount of interest here that is taxable in Indiana.

But I suspect that you won't see this Indiana screen if you didn't enter the muni correctly on the federal return.

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2 Replies
BMcCalpin
Level 13

How do I enter Tax exempt muni's taxable to Indiana? I followed the screens, but it's not showing up on Indiana return as an add-back.

When you enter on the federal return the tax-exempt interest, you need to make sure that you enter it in box 8 on the 1099-INT input screen. This requires you to check the box "There is more information than just in box 1" (paraphrase). Then on a subsequent screen, you will be asked from what state the munis come (in my test, I chose New York).

Then go to your Indiana interview. After a few screens, you should see a screen entitled "Interest on Out-of-State Municipal Obligations". You can enter the amount of interest here that is taxable in Indiana.

But I suspect that you won't see this Indiana screen if you didn't enter the muni correctly on the federal return.

msmyth
New Member

How do I enter Tax exempt muni's taxable to Indiana? I followed the screens, but it's not showing up on Indiana return as an add-back.

I assumed when you enter the state on the Federal Screen where it asks you, it would pull to the state return.  I struggled to find the muni entry in the Indiana screens.  So basically it's an override.  sjk, cpa
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