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dtom777
Returning Member

Not all state tax-exempt interest flows from federal Schedule B into my state taxes

Federal Schedule B has tax-exempt interest with the state ID specified (CA) from one payer. Another payer has tax-exempt interest from multiple states (broken down on its 1099-INT) and the state ID is MX.

 

I don't see where the CA tax-exempt interest from the account with multiple states gets used anywhere beyond the 1099-INT. That number does not appear on Schedule B. Where should it appear?

 

On my CA Interest and Dividend Adjustments Worksheet, the Tax Exempt Interest Smart Worksheet has a line  B, "California state tax exempt interest from federal Schedule B." The number on that line doesn't appear anywhere on my Schedule B and is much lower than what it should be. It should be the total of the CA tax-exempt interest on Schedule B and the CA tax-exempt interest on the 1099-INT that breaks down multiple states, right?

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