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wonderdogkathy60
New Member

I keep getting a review item and it asks for a state ID number for Box 8 on my 1099-INT form. There is NO Box 8 with a state ID on my form. What do I do now

 
2 Replies
ToddL
New Member

I keep getting a review item and it asks for a state ID number for Box 8 on my 1099-INT form. There is NO Box 8 with a state ID on my form. What do I do now

Enter "XX" or select "More than One State" if you have a drop-down menu (last selection).

The program is asking for this information because you either had tax-exempt interest, or the program thinks you had tax-exempt interest (i.e. a "0" was imported in Box 8 field). "XX" is the default solution for this issue.

If, however, all (or a significant amount of) the tax-exempt interest was paid by your state of residence, you would want to identify that state rather than entering "XX". If you don't, you will pay state tax on that interest even though it was intended to be tax-exempt.

sfnative
New Member

I keep getting a review item and it asks for a state ID number for Box 8 on my 1099-INT form. There is NO Box 8 with a state ID on my form. What do I do now

Be very careful.  If you live in California & your tax-exempt interest is from California, using XX will cause that income to become state taxable!  That TT error could have cost me $2,000.00!  Took me a while to find how to correct it.  Once I changed from XX to CA, my total tax went down by 2K!
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