Easy quick choice?....If you are in the interview...use the end of the state's list "More than one state". IF you are in error check, you use "XX" to indicate "More than one state"
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Box 8 is for tax-exempt interest for individual Municipal bonds that you own. You look at your supplemental information sheets on your year-end or tax forms brokerage statements to get the Information about which state's bonds produced the $$ in box 8. IF none of the Muni bonds was issued by govt bodies within your own s, then you just choose "More than one state" for all of it...and you are done.
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IF you live in an income-taxing state...and IF some of the $$ in box 8 are from bonds issued by your own state, or cities/counties/public schools or school district bodies located within your own state....then you "can"...but do not have to....break out the $$ amount for those home-state bonds to get some state income deduction for your own state.
AN example of a state tax-exempt breakout is shown in the picture below ( for an NC resident). Any bond dividends from US Territories can be included too, but all other states are just lumped together as "More than one state ".
But it is up to you to calculate and provide the exact $$ amounts involved if you decide to do the break-out.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
