NJ Municipal Bond Interest

[mitchden1]

I imported the 1099 Consolidated Tax Statement from my financial company. The tax-exempt interest is shown in Box 8 of the 1099. Since the tax-exempt interest is from NJ and other State municipal bonds, does Turbotax know how much tax-exempt interest is from each state? I don't see it on any of the Turbotax federal or NJ State forms. I shouldn't pay NJ taxes on the NJ municipal bond interest.

[SteamTrain]

You have to use any supplemental information that you have, or the brokerage has, to break out just the portion of the tax-exempt interest that came from NJ bonds.  Nobody's software can "automatically" do that breakout for you.

Since box 8 on a 1099-INT comes from individual bonds you owned, the Supplemental information after the consolidated tax form the brokerage supplied to you, should show each bond, and the box 8 interest received from it.  IF not, call your Broker and ask how to find it.

In the software, you would edit the 1099-INT that has box 8 $$, and on a page following the main form, you would break out interest from NJ (and any US territory) as follows (example is for an NC resident):

___________________________________________

[mitchden1]

Thanks. In your example, the total municipal interest of all states would be equal to $2,345. Is that correct? If so, I would also have to list the municipal interest from NJ as well.

[SteamTrain · Accepted solution]

In my example...2345 is what is in box 8.

You wouldn't use NC...you would use NJ and break down the 2345 to

1)  NJ   $$ from only NJ bonds

2)  Any US Territory  bond $$  (if you hold any...you probably don't, but I know PR has some issued...perhaps Guam too)

3)  All remaining $$ are tagged together with the multiple states designation.

Once done, the software would not add the $$ from #1 and #2 to NJ income.  But #3 is NJ income.