How to enter Muni Bond from non-NYS sources in New York State return

[dave479]

Where do I enter "Interest income on state and local bonds and oblications (but not those of NYS or its local governements)" for New York state return in easystep in turbotax Home & Business Mac desktop?

Thanks

[SteamTrain]

@dave479 

You enter those $$ in the Federal tax section, where you enter 1099-DIV or 1099-INT forms.

IF from a Mutual Bond Fund or EFT if will be in box 12 of a 1099-DIV.

IF from an individual bond you own, it will be in box 8 of a 1099-INT.

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In either case, there will be a follow-up page after the main form which ask which state(s) the $$ came from.....and if the $$ amount came from bonds issued by more than one state...you can break out the amount that came from your state vs. the others in a table as show below.  (If you don't want to calculate your own state's $$, you would assign the entire amount to "Multiple States"....last selection in the list of states).  In doing that, the appropriate amount will be added back as income for your own state.

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[baldietax]

not sure if there is any nuance or issue with NY state but generally this should flow from the 1099-INT you already entered for Federal and specify which state the muni income in Box 8 is coming from (or Box 12 on 1099-DIV).

note if you have a mixture of NY and non-NY bonds, and have any sort of premium or accrued interest adjustment then you should split up the 1099-INT and enter NY or non-NY bonds separately, to get the right net income amount which is taxable in NY.  For non-NY bonds you simply identify the 1099-INT as coming from "Multiple States" and should be considered state taxable.

also note if you make adjustments for accrued interest paid and have other income boxes on the 1099 i.e. Box 1 or 3 as well as Box 8, then you also need to split up the 1099 otherwise Turbotax will apportion the adjustment across all types of income on the 1099 (Turbotax now has an on-screen note to advise to do that when entering the adjustment)

check the net muni income (Box 8 less Box 13 less accrued interest adjustments) is reflected as an addition to income for state tax.

[dave479]

Thanks - 

good - this is where I thought the figures needed to be added.

I added theses here originally, however - when I split two figures between New York and Multiple States, I get no change in the NYS tax due and the form IT-201 page 1-2 line 20 is still blank. (this is the form location where the interest income on state and local bonds from non-NY sources need to be entered).

Thanks

[SteamTrain]

@dave479 

1099-DIV or 1099-INT??

1)  IF 1099-DIV, the first button at the top of the picture I showed...that MUST be set to "Multiple States" first...otherwise the second button and table data won't transfer properrly.

2)  IF that still doesn't work...create two separate 1099-INT or 1099-DIV forms....one with just the NY bond $$ (and US Territory bond $$ if appropriate...and a second one with all of the remaining $$ set as "Multiple States".

#2 shouldn't be necessary...but two days before 15 Apr???...no time to troubleshoot.

[baldietax]

yeah sounds like that bug where the state gets stuck

@dave479 if still having issues you can also check in the worksheets in forms mode since you are using desktop I think, for 1099-DIV Box 12 the very last line has a flag "state where the dividends were earned" - if this is set to NY it will ignore the table above it and assuming everything is NY, this needs to be set to XX to use the table.  1099-INT Box 8 has a similar structure.

everything treated as VAfixed to use the table

[dave479]

Thank you very much - if I change the order and place Multiple States first and New York second, that does not work.  the box 12 state flag in the 1099-DIV form is stuck at NY. If I change manually change the box 12 state flag  from NY to XX, then for IT-201 fills properly.

[dave479]

Note, I did not find a way to do this from Easy Step

[SteamTrain]

@dave479 

Great...you were able to fix it in Forms Mode.  People with Online software can't.....since thy don't have direct Forms access

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For the Easy Step:

Yeah, a few folks don't understand what I said about setting the first button as "Multiple States".

THE First  .."....only one state"   Radio Button must be set to "Multiple States".  Using the  second button selection, and changing the order in the full table doesn't help.

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