Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
mw222
New Member

Puerto rico bond interest is not treated correctly on the CA return. How should this be handled.

 
1 Best answer

Accepted Solutions
TerryA
Level 7

Puerto rico bond interest is not treated correctly on the CA return. How should this be handled.

That's right, PR bond interest is not taxable by the states. The TT/States won't include it in taxable if they know it's PR bond interest and that has to be entered in the 1099-INT federal screen.

Go back and edit that 1099-INT. The PR bond interest should only be in Box 8, not also in Box 1. Click through to Which state is your $$ of exempt interest from? Be sure you have selected Puerto Rico. That will keep it as tax exempt interest in the TT/States, including TT/Calif (I just tried it and it works fine).

View solution in original post

7 Replies
TerryA
Level 7

Puerto rico bond interest is not treated correctly on the CA return. How should this be handled.

Please elaborate - what is it that isn't correct?
mmw90012
New Member

Puerto rico bond interest is not treated correctly on the CA return. How should this be handled.

Puerto Rico bond interest is not taxable in California and other states and turbo tax treats it as taxable
MissM52
New Member

Puerto rico bond interest is not treated correctly on the CA return. How should this be handled.

This is not working for me. I have tax-exempt interest in two states: California and Puerto Rico. The CA State turbo tax is only treating the CA interest as tax-exempt, and I can't figure out how to modify it
TerryA
Level 7

Puerto rico bond interest is not treated correctly on the CA return. How should this be handled.

That's right, PR bond interest is not taxable by the states. The TT/States won't include it in taxable if they know it's PR bond interest and that has to be entered in the 1099-INT federal screen.

Go back and edit that 1099-INT. The PR bond interest should only be in Box 8, not also in Box 1. Click through to Which state is your $$ of exempt interest from? Be sure you have selected Puerto Rico. That will keep it as tax exempt interest in the TT/States, including TT/Calif (I just tried it and it works fine).

View solution in original post

mw222
New Member

Puerto rico bond interest is not treated correctly on the CA return. How should this be handled.

Thank you TurboTaxTerry.  I deleted and reentered the entire 1099 and your solution worked.
MissM52
New Member

Puerto rico bond interest is not treated correctly on the CA return. How should this be handled.

This is not working for me. I have tax-exempt interest in two states: California and Puerto Rico. The CA State turbo tax is only treating the CA interest as tax-exempt, and I can't figure out how to modify it
anuragpgupta
New Member

Puerto rico bond interest is not treated correctly on the CA return. How should this be handled.

I have the same problem.  Maybe the way out is to enter it as two separate 1099-INT, one for CA and one for PR, and then TT/Calif would take care of it correctly (as the answer above seems to suggest). Would this work, and is this ok?
Dynamic AdsDynamic Ads
Privacy Settings
v