Federal review is requiring an entry under box 11 state ID. This income is from a mutual fund that has holdings in multiple states, there is no breakout given by state in the 1099. Why is this even required as I live in a state that doesn't tax interest income? What do I enter?
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If you received any tax-exempt interest (including any tax-exempt OID), such as from municipal bonds, each payer should send you a Form 1099-INT or a Form 1099-OID. In general, your tax-exempt stated interest should be shown in box 8 of Form 1099-INT or, for a tax-exempt OID bond, in box 2 of Form 1099-OID, and your tax-exempt OID should be shown in box 11 of Form 1099-OID.
In the follow-up questions in TurboTax for Form 1099-INT, you could identify all of the interest as being accrued in your state, or ask the payer for a breakdown if the amounts are significant enough that you could owe tax in another state.
In the question about which state your exempt interest is from, you can also select " I earned tax-exempt interest in only one state" and then select "Multiple States" from the drop-down menu.
If the calculation of the accrued interest isn't clear from the documents you were provided, contact the payer.
See IRS Pub. 550 for more information.
[Edited 02/22/25| 5:02pm PST] and @kashblack1953: (edited)
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