Tax-exempt interest state allocation

Forum|Forum|3 years ago
April 11, 2023
4 replies
42 views

On the 1099-div for a brokerage account, box 12 Exempt-interest dividends, I have an entry for the state I live in, which is MA, and a line for all nonresident states, which is XX. At the end of box 12 it asks for the state where the dividends were earned. In the past, I've always entered MX, but the time I'm getting an error that it's not a valid state. Am I supposed to enter just MA because that's the state I live in?

Not A Product Question

Best answer by SteamTrain

@cerega

You REALLY should be doing that breakout in the interview....NOT in Forms Mode. It works properly in the Interview following the main 1099-DIV form.

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But

Yes...interesting...I haven't checked the coding for a couple years, but in Forms Mode, on the 1099-DIV form

1) In the upper breakdown box you put "MA" for the MA $$ portion, and "XX "for $$ from all the other states.

2) Below the breakdown box you put "XX" this year, and not MX.

Don't know why they changed it, and I can't guarantee it won't go back to MX next year.

(2021 used MX)

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Like this for a Desktop Software user living in NC

JohnW152

Level 15

Please clarify.

You say that, "At the end of box 12 it asks for the state where the dividends were earned." Do you possibly mean Box 14? An entry in Box 14 is only necessary if there's an entry in Box 16, State tax withheld. See the screenshot.

Or, it's possible that you're talking about the Tell us more about your exempt-interest dividends page, a couple of screens later, which can accommodate one or more states as the source of the dividends. At any rate, "MX" wouldn't be a valid value on either of these pages.

Where, in fact, were the dividends earned? Please explain.

ceregaAuthor

Level 3

No, it's not box 14, it's box 12. In any case, the reply from Steamtrain answered my question. Thanks.

SteamTrainAnswer