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New Member
posted Jun 6, 2020 5:48:25 PM

I have tax exempt interest for multiple states with lots of states under $1, is it necessary to report one state by one state?

I have tax exempt for 49 states, should i report this one state by one state, regarding lots of states interest are under $1

0 3 4263
3 Replies
Level 15
Jun 6, 2020 5:50:51 PM

Is this from a municipal bond fund?

Level 15
Jun 7, 2020 4:56:10 AM

IF the exempt dividends are from multiple states, for a Municipal Bond Fund  (usually reported on a 1099-DIV, box 11):

…..you only break out your own state's $$, any US territories (like Puerto Rico), and all other stares are totaled together as one entry as "Multiple States"  ("Multiple States" selection is at the end of the list of states).

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An example for an NC resident, with $1000 in box 11 of a 1099-DIV:

 

NC     100

PR        50

Multiple States   850

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Note:  CA and MN residents cannot do a breakout unless the fund in question holds at least 50% of it's assets in that state's bonds.  IL doesn't allow it at all for Muni bond funds...only if you own individual IL bonds.

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ohhh, and UT has special extra exclusions... Utah residents can also exclude bond interest from fully non-income-taxing states and DC  (AK, FL, NV, SD, TX, WA , WY  )  ,,,might be something about ND bonds for  residents of UT too, but I'm not sure why those might be involved yet.

Level 15
Jun 7, 2020 6:38:04 PM

TurboTax uses the term "More than one state”  for the desktop (download/CD) software and "Multiple States" in the  online program.