tax exempt interest

[jk367]

In the federal return section, I entered the amounts of federal tax exempt interest that were exempt and not exempt in my home state of CT. Now in the state section, Turbo Tax is asking for the same information. Do I need to enter the amounts again? Will that double the non-exempt interest for CT?

[ThomasM125]

I think you may be referring to this question that references interest that was not taxable on your federal return but is taxable on your Connecticut return. The question on the federal return for an entry in box 8 on form 1099-INT where you indicate that the income is exempt in Connecticut is not talking about this. So, if you have an entry in box 8 on your Form 1099-INT, you would leave this question blank, since you don't have income that is not taxable on your federal return but is taxable on your Connecticut return. If you are entering a form 1099-DIV, then substitute box 12 for the reference here to box 8 on Form 1099-INT.

[Bpex]

Wouldn't it be the opposite of what you said? If Box 8 on 1099-INT and Box 12 on 1099-DIV are empty, then leave those two questions blank because the interest/dividends are fully taxable in the state and federally?

[RobertB4444]

Yes, if both boxes are blank then you can leave the box on the state return blank as well.

@Bpex