Re 1099-DIV Exempt Interest with no state and no section called "State/Local Tax-Exempt Income from Fidelity Funds".
What I learned using easy steps on Turbo Tax (TT). See Q1, Q2, Q3 below.
Starting with Federal
I imported the 1099-DIV, Box 12 - Exempt - interest dividends = 1000.00 (for simplicity)
When I got to the screen in TT that says "Tell us more about your exempt-interest dividends"
Which state is your $1000.00 of exempt-interest dividends from?
[ ] I earned exempt-interest dividends in only one state.
[X] I earned exempt-interest dividends in more than one state.
State: Multiple States (last choice in drop down)
Exempt-interest dividend amount: $925.60
State: CA
Exempt-interest dividend amount: $74.40
How I derived these numbers ...
1) All the exempt interest dividends were from a fund called FUENX
2) Using https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/taxes/TY24-TEI-by-Year-Supplemen... as guidance for FUENX - CA 5.33% + GUA 0.00% + PR 2.11% + 0.00% = 7.44% * $1000.00 = $74.40
Then when I get to State Taxes for CA in TT that says: Tax Exempt Interest and Dividends
Tax exempt interest from California sources of $74 transferred from your federal return.
Is any of this interest from funds with less than 50% of their assets invested in California and U.S. obligations?
[X] Yes
[ ] No, all funds are 50% or more invested in California or U.S. obligations
Q1)
I don't know why this question is throwing me for such a loop but I have no idea how to answer this. I believe the answer is YES because it was 7.44% (California and U.S. obligations) I calculated from before which is less than 50% of this fund.
Q2)
AND TT wants me to fill in a number:
Enter Less Than 50% Tax Exempt Interest : ?????
Isn't this the same amount? $74 ?
BUT wait.
The footnote on https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/taxes/TY24-TEI-by-Year-Supplement... for CA:
Certain states require funds to meet in-state investment thresholds before a shareholder can exempt the income earned from bonds issued by his or her home state. In 2024, none of the funds listed above satisfied the thresholds imposed by California or Minnesota. Certain states, such as California, may require the payers of exempt interest dividends to report to the state tax authority any municipal bond interest and exempt-interest dividends paid to residents.
Q3) Should I just forego the $74.00 calculation I made above? i.e. All $1000 is from Multiple States.
