Hi, I received a 1099 consolidated which has my 1099div in it from SoFi invest. Everything went smoothly until it asked which state my exempt dividends came from. It does not list any state. It's only $1.10 and it says something about selecting "More than one state" if it isn't much. Is this acceptable?
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for 1.10 use TX.
TX would work, but could create an issue for UT residents, especially if the $$ amount gets greater.
I think "More than one state" would be somewhat more appropriate for many people...but yours makes little difference. (at the end of the list of states. Online software users see a "Multiple States" instead, but same thing)
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When the amount in box 11 becomes appreciable...like thousands..."Multiple States" is always acceptable.
......the thing is, if your own state has an income tax, you are not taxed on bond interest that came from bonds issued by the state/counties/citys, etc within your own state, so if you can break out the sub $ amount that came from our own state's bonds, then that $$ amount won't be taxed by your own state. It can be a pain to do though, as you have to get details form each fund that pumped $$ into box 11.
Example: IF you received $1000 in box 11 from a Municipal bond fund, and your Bond fund indicates that 2% of those $$ came from your own state's bonds. So you'd break down the box 11 on the follow-up page as $20 from your state, and $980 from the rest (Multiple states). That's $20 that will not be taxed by your state, and if your state taxes at 5%...you save a whole $1 for your effort
....or just select "Multiple States " for all of it and move on.
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Limitations: IL doesn't allow breakouts of $$ from Bond Funds, only from individual IL bonds you own. CA and MN limit box 11 breakouts on 1099-DIV forms to funds that hold a certain minimum amount of that state's bonds.
I appreciate the info, I think I'll just go with that. Also if you don't mind, I have qualified dividends but I have my investing set to automatically deposit $100 every month and I don't know how that would effect my holding period to be considered "qualified". I only have like $10 in dividends so would it be ok to just list everything as "ordinary" so I don't have to track all of this down? Thank you again!
Sorry, I'm not up on the details of Ord-vs-Qual dividends & holding period..... @Mike9241 may know the details.
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But if you have an actual 1099-DIV form from your account, you just use the 1a and 1b values shown........if the total is currently so small that they didn't actually issue a 1099-DIV, I would imagine that ~$10 in just 1a would not really affect your tax situation very much. It would just all be taxable.
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