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adams-2
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How do you add tax exempt interest from the 1099-Div to Louisiana return IT-540 Schedule E line item 2A?

Municipal interest dividends are taxable in Louisiana except from U.S. Government and Louisiana Obligations
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3 Replies

How do you add tax exempt interest from the 1099-Div to Louisiana return IT-540 Schedule E line item 2A?

For tax-exempt interest from other states, that transfers from your entries in the Federal section for any 1099-DIV forms you entered that had any box 11 $$ on that -DIV form.

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For example, if you don't bother to break out any LA-bond $$ (you are not required to), then you just tag all of box 11 as being from "Multiple States" on the follow-up page that asks about what states produced the $$ in box 11.

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1099-DIV_TaxExempt_State_Online_1.png

 

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OR...if you do have the information needed to calculate what sub-$$ amount came from LA bonds, you would break that down as follows....but for low LA $$ amounts, it may not do much and may not change your LA taxes at all. 

 (Example is for an NC resident)

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1099-DIV_TaxExempt_State_Online_2.png

 

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
adams-2
New Member

How do you add tax exempt interest from the 1099-Div to Louisiana return IT-540 Schedule E line item 2A?

Box 11 exempt-interest dividends on the 1099-DIV are not being reported in Louisiana Tax Form IT-540, Schedule E line item 2A as an adjustment to income.  Amounts attributable to Multiple States and Louisiana Obligations have been entered in the Federal Return.  Am I missing something, or is the link broken between the returns?

 

I appreciate your assistance.  

How do you add tax exempt interest from the 1099-Div to Louisiana return IT-540 Schedule E line item 2A?

Don't know.   

 

1)  A few folks have noted that deleting the entire 1099-DIV and re-entering it again manually, fixed their problem.   And if it was imported originally, don't do that ....enter it all manually.

 

2)   If you are breaking out LA $$ you could also try entering two 1099-DIV forms form the same provider.....one with just the LA $$ in box 11, and a second one with just the "Multiple States" $$.   Any other boxes on that 1099-DIV would just go on one of the forms  (though box 12 $$ would likely go with the "Multiple States" form)

 

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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