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Form 1099-DIV: Why is Line 11 (exempt interest dividends) included as taxable income? All income is coming from municipal bonds in the state I reside in.

 
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3 Replies
JamesG1
Expert Alumni

Form 1099-DIV: Why is Line 11 (exempt interest dividends) included as taxable income? All income is coming from municipal bonds in the state I reside in.

After entering the 1099-Div, click Continue.

At the screen Tell us if any of these uncommon situations apply to you, click Continue.

At the screen Tell us more about your exempt-interest dividends, did you click I earned exempt interest dividends in only one state and chose the state in the drop down menu?

 

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1HONEYBEE
New Member

Form 1099-DIV: Why is Line 11 (exempt interest dividends) included as taxable income? All income is coming from municipal bonds in the state I reside in.

I am being asked what state the exempt interest dividends come from on my 1099-DIV form.  I don't know hows to determine the state it doesn't say.  It comes from a Tax exempt bond fund.  Thank you!

DMarkM1
Expert Alumni

Form 1099-DIV: Why is Line 11 (exempt interest dividends) included as taxable income? All income is coming from municipal bonds in the state I reside in.

You can usually find the state(s) information for the tax exempt interest on your year-end statement from the brokerage.  If you are having trouble locating it you should contact the brokerage for assistance.  

 

 

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