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pricefreeturbo
New Member

For 2018 I entered tax free mutual fund distributions, it did not crosswalk to CA tax form, so now I owe taxes on "tax free" account? What happened?

Why didn't the state form pick up the tax free distribution as had happened on my previous professionally prepared returns?  Instead, the distribution become "additional CA income" thereby taxable.   Please help me correct this problem.

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SteamTrain
Level 15

For 2018 I entered tax free mutual fund distributions, it did not crosswalk to CA tax form, so now I owe taxes on "tax free" account? What happened?

IF they were actually CA individual bonds you owned, then they could be CA-non-taxed.

BUT

......for Mutual Funds, the Fund must hold at least 50% of it's assets as CA bonds before you can get any of it released from CA taxation.

Now..if you are sure that the bond fund you own does meet that CA-restriction, then post back and I'll show you how to do it.

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

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1 Reply
SteamTrain
Level 15

For 2018 I entered tax free mutual fund distributions, it did not crosswalk to CA tax form, so now I owe taxes on "tax free" account? What happened?

IF they were actually CA individual bonds you owned, then they could be CA-non-taxed.

BUT

......for Mutual Funds, the Fund must hold at least 50% of it's assets as CA bonds before you can get any of it released from CA taxation.

Now..if you are sure that the bond fund you own does meet that CA-restriction, then post back and I'll show you how to do it.

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

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