1099- Div exempt interest dividends

[CP01]

Hi all,

On my 1099-Div 12 Exempt Interest Dividends has $500 but 14-16 doesn't have any state information and in the Supplemental information it doesn't list state information either. It seems some are US treasury bonds. I am California since everything my accounts in California can I put CA instead for 14? This helps with my CA returns.

Please provide some guidance. Thanks

[DawnC]

Box 12 represents tax-exempt interest.   You have to enter the amount in box 12, but on the next screen, put a checkmark in the first box - A portion of these dividends is US Gov. interest.  Then on the next screen, you enter the amount that is US Gov interest.   And on the next screen, you will enter CA.  TurboTax automatically transfer that info to your CA state return.   Leave Boxes 14-16 blank, those box do not apply if they are empty (those are for state withholding).  

The U.S. government taxes income you receive on its own bonds. Your state does NOT tax income from U.S. government bonds, but each state defines government bonds differently.   You should check to see if any part of these dividends is taxable in your state. This information is usually included with the 1099 you received from your broker.  You may also be able to get this information from your mutual fund company's website.   

Certain mutual funds pay “exempt-interest dividends.” If the mutual fund has at least 50 percent of its assets invested in tax-exempt U.S. obligations and/or in California or its municipal obligations, that amount of dividend is exempt from California tax. The proportion of dividends that are tax-exempt will be shown on your annual statement or statement issued with federal Form 1099-DIV, Dividends and Distributions. For more information,    Linked Ref:  CA FTB

[CP01]

Thanks for responding. If I can't locate the state any where cause the broker can't provide the information can I still include CA on line 14? 

[CP01]

I tried to do the calculation it's getting confusing :( Will it be safe to enter CA since I live in CA or should I include "more than one state" if no state information is included.  Please help thanks 

[SteamTrain]

@CP01 

For the $$ in Box 12, you indicate "More than one state" for all of it.

CA doesn't allow you to break out the amount from CA unless the Tax-exempt bond fund you owned contained more than 50% of CA bonds.  Unless you held a CA-Specific bond fund, then you just select "More than one state" for all of it.  (same selection is made if you just don't know)

_______

The portion that came from US Bonds refers to the sub-amount from box 1a $$ of the 1099-DIV.  No USbond/Treasury $$ are in box 12 of a 1099-DIV..

[SteamTrain]

Boxes 14,15,16 are only used if you actually had CA tax withholding done by the issuer of that 1099-DIV. 

Thus, if the issuer did not have any $$ listed in box 16, you need to leave 14, 15 16 entirely blank.

[CP01]

Thanks for responding. This is not cool that the brokers doesn't include the state information on the forms now I'm paying extra on CA taxes :(

[VolvoGirl]

Some brokers are not including the backup detail sheets now and you have to go online to get them.  Like I have Vanguard and I'm in California too.

For Vanguard......

You will need to calculate any amounts yourself using these tables.  Vanguard use to include these tables with the 1099 forms but now you have to get them online here.  There are 3.

Tax information for Vanguard funds | Vanguard

It can be hard to calculate.   I had to make a spreadsheet listing each fund, the dividend and percentage.

[CP01]

This is annoying cause there are so many funds will take hours trying to find out each funds. I guess no choice but pay the extra to the state :( :( 

[SteamTrain]

But...like I said before, for CA, you probably wouldn't be able to use the CA amounts for box 12 on a 1099-DIVunless it was from a CA-specific bond fund in the first place.....and usually the CA-specific mutual funds, or bond fund collections, have CA in their name.  

(though, I can't know what's in all funds from all financial providers).

[CP01]

Thank you all for your responds appreciate it.