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.
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.
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 $$, and on a page following the main form, you would break out interest from NJ (and any US territory) as follows (example is for an NC resident):
___________________________________________
Thanks. In your example, the total municipal interest of all states would be equal to $2,345. Is that correct? If so, I would also have to list the municipal interest from NJ as well.
In my example...2345 is what is in box 8.
You wouldn't use NC...you would use NJ and break down the 2345 to
1) NJ $$ 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.