1099-DIV - VA state tax implications?

Forum|Forum|3 years ago
March 25, 2023
9 replies
57 views

Regarding our 1099-DIV from Invesco, I am confused as to how/where, on our federal tax return, I am to enter the amount of tax that would decrease our tax obligation to Virgina. I have one fund that seems to have state tax implications listed on Invesco's "Federal interest earned derived from government obligations" table that came with their 1099-DIV.

The fund name is Invesco AMT-Free Municipal Income Fund. This table shows .34% under this fund for Virginia, but I do not know what I am to do with this percentage or how/where to enter it in our federal return so that it feeds properly into our state return. Am I to multiply .34% by the value in box 12 (Exempt Interest Dividends) or the value in box 1a (Total Ordinary Dividends)? Specifically what screens do I enter this amount in Turbo Tax, federal and state?

Thanks so much.

SteamTrain

Level 15

@Suchin21

It refers to box 12 of that 1099-DIV....but if you hold other funds that contributed to box 12 on that same 1099-DIV form, then it only refers to that particular Invesco Fund's $$ contribution to box 12. That exact $$ amount you'd have to get from some additional supplemental details as to how much gross was in box 12 form the Invesco fund.

For such a low %, it might not be worth the bother to break out the VA $$ amount....other than as a future use exercise. Especially if box 12 is a low $$ amount.

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Example: If box 12 had $1000, and if ALL was from that Invesco fund. Then (0.0034 x 1000) = $3.40 was from VA bonds.

So that reduces your VA income by $3.40 .....and if that was taxed by VA at (say) 5%....you might save yourself 17cents in VA taxes (except many times, tax tables are used, so it might not save you even 17 cents)

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

Suchin21Author

Level 4

Thanks for your response.

Since it is not worth it, based on your example, what do I do, just not check off the box for "A portion of these dividends is U.S. Government interest"?

Out of curiosity, and for future reference, if it was worth it to break out the VA $$, where would that be entered?

Thanks again.

SteamTrain

Level 15

1) For the checkbox "A portion of these dividends is U.S. Government interest", if you don't have any US govt $$ to enter (referring only to a sub-portion of the box 1a $$) , then you wouldn't check that box at all....and go down to the "None......." checkbox instead

2) and on another page or 2 later...For the box 12 $$, the VA bond $$, a page asks something like "Which state are your $xxxx of exempt-interest dividends from?".......and you'd scroll to the bottom of the list of states, and select the choice: "Multiple States" since the $$ in box 12 came from a bunch of different states.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*