How to calculate U.S. Government interest income 1099-DIV--inc. both direct and indirect?

[T_MB]

My 1099-Div contains a detail for both "direct federal income" and "indirect federal income" as separate line items.

Do I need to include both as "dividends from U.S. government interest"?

[ThomasM125]

Both will be taxable on your federal return, so you should include them with your form 1099-DIV entry. You should read the notes to your form to see if there is any special treatment applicable to your state return.

[KREC]

I have same question. Brokerage has two columns one showing direct federal income with a line item for each security and indirect federal income. Which one is considered US obligation when asked on the state form?

example:

Baird Aggregate Bond Fund

direct federal $271

indirect federal $281

notes only talk about some states having thresholds but don’t tell you which column is applicable 

[DianeW777]

This is usually found in the paperwork that accompanies the Form 1099-DIV.  It will likely give you a percentage of amounts that are from your resident state holdings.  We are unable to know this information for you.  Contact your broker or agent to get the percentage that might apply for your state return.

@KREC 

[JmsTax]

Are you saying we are supposed to add the Direct Federal Income amount to box 1a or box 1b.

For example, box 1a shows $3,000. Direct Federal Income of $216. I would then make box 11 $3,216?

Would I also add the indirect number to box 1a. Or does box 1a already account for these amounts?

Thank you.

[davidcjonesvt]

in the question that comes up after entering interest or dividends, where it asks if any of the income was federal government interest, answer YES and then enter the direct federal interest amount. It could lower your state taxes