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New Member
posted Jun 6, 2019 12:45:36 AM

What is the line in Box 10: State where dividends are earned used for? And why doesn't the Out of State Tax exempt interest move to the AZ state tax form when I use AZ?

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1 Best answer
New Member
Jun 6, 2019 12:45:39 AM

In my 1099-DIV for 2018 the tax exempt interest is shown on Box 11.  It is most likely that very little of you tax exempt dividends come from Arizona, ergo you should select the "More than one state" option on the drop down menu.  Also DON"T check the box beside "I earned tax exempt dividends from more than one state".  The fact that you entered "More than one state" in the drop down is sufficient.  Also make sure that your 1099-DIV has an amount entered on Line 11.  I live in GA and when I followed the above directions, opened my GA return, that exact amount had been entered on "Interest on Non Georgia Municipal and State Bonds" of GA Schedule 1.  I would imagine that some of your dividends are earned in Arizona.  These would not be subject to Arizona taxes.  However, you would probably have to contact each company and find out what percentage of your dividend came from Arizona.  This would be a very time consuming process and in the long run I think that the little you would save would not be worth the time and effort of locating and entering it.  Personally, I don't waste my time with this procedure.  Hope this helped.

2 Replies
Level 15
Jun 6, 2019 12:45:37 AM

Are you using 2017, or 2018 desktop software?
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New…..for 2018, the tax-exempt $$ Need to go in at box 11 of the 2018 1099-DIV form.  Then Edit the form and re-confirm the amount, and the "More than one state" selection on the follow-up page
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IF using the 2017 software for doing a late 2017 tax return...go back thru the 1099-DIV form and make sure the $$ are in box 10 for 2017, AND that "More than ones state" is properly selected on the follow-up page....either for the whole amount, or in the breakdown amount below if you broke out some AZ $$.
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Should show on line 13 of the AZ form 140 for either year
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New Member
Jun 6, 2019 12:45:39 AM

In my 1099-DIV for 2018 the tax exempt interest is shown on Box 11.  It is most likely that very little of you tax exempt dividends come from Arizona, ergo you should select the "More than one state" option on the drop down menu.  Also DON"T check the box beside "I earned tax exempt dividends from more than one state".  The fact that you entered "More than one state" in the drop down is sufficient.  Also make sure that your 1099-DIV has an amount entered on Line 11.  I live in GA and when I followed the above directions, opened my GA return, that exact amount had been entered on "Interest on Non Georgia Municipal and State Bonds" of GA Schedule 1.  I would imagine that some of your dividends are earned in Arizona.  These would not be subject to Arizona taxes.  However, you would probably have to contact each company and find out what percentage of your dividend came from Arizona.  This would be a very time consuming process and in the long run I think that the little you would save would not be worth the time and effort of locating and entering it.  Personally, I don't waste my time with this procedure.  Hope this helped.