Muni Bond Funds with multiple state exposure

[jjkneeshaw]

I have a few muni bond funds in Fidelity that are not state specific. Rather they are comprise of multiple states. The brokerage sends me a letter telling me what percentage of municipal income paid comes from my resident state of NY. Are these tax exempt from New York State taxes? If so, where do I record that portion which is NY specific - on the Federal Return or is there somewhere in the NY state return in Turbo Tax? If it is on he Federal side does that mean I have to calculate the NY portion and will that transfer to my NY state return? Thank you for whatever assistance you can provide!

[SteamTrain · Accepted solution]

It is done on a follow-up page where you entered the 1099-DIV form in the Federal area.

BUT, you have to calculate the exact $ amount yourself, using the % values for each Mutual fund, and the dividend distributions specified in the Supplemental Details sheets in your consolidated Fidelity 1099-B.

__________

So you go back and edit the 1099-DIV, and on a follow-up page you break out your NY $$ (and any US Territories Puerto Rico, Guam, US Virgin Islands)...as shown below using NC as an example:

____________________________________________

[jjkneeshaw]

Thank you for the quick response. I see where to enter the information. Does the data automatically carry over into my NY state return so I am not paying tax on the NY portion of the income,  or do I have to do something when completing the state portion of my taxes?

[DianeW777 · Accepted solution]

Yes. TurboTax will carry tax exempt interest dividends right over as nontaxable on the New York (NY) return based on your federal entry.  As you continue through the NY state return carefully watch any questions pertaining to the tax exempt interest dividends, if applicable.