On Form 1099-INT Worksheet, under Box 8 where it asks for "State ID where exempt interest was earned", I have more than 1 state. Says to see Help. How do I do this?

[ajrubins]

How do I enter more than one state on the 1099-INT worksheet under Box 8 where it says State ID where exempt interest was earned.  Says "If more than 1 state, See Help", but I can not find an answer.

[smathrh]

Where is this "more than one state" box located?

[SteamTrain]

@smathrh

It is on a followup page after the main form page when you enter or Edit a 1099-INT form, or 1099-DIV form.  
It looks like the picture in the answer posted below.

IF you imported a 1099-DIV with box 11 $$ (for 2018...on the 2017 forms it was box 10)...or if you imported  a 1099-INT with box 8 $$ on the form, then you have to EDIT that 1099-DIV or -INT form in order to go thru all the Q&A pages to get to the setting..

[jennifercoleman]

Were is the follow up page?

[SteamTrain]

@jennifercoleman

You just enter the 1099-DIV or 1099-INT form (or EDIT it if it already exists) and after you make sure all the boxes are correct on the main software form, you go to the bottom of the page and hit "Continue" and proceed thru the pages of the interview that "follow" the main software form.  Each page is a "followup" page and has different entries you may need to consider .

[SteamTrain · Accepted solution]

You don't have to do it if you select "More than one state" in the top box and Do Not check the checkbox.

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BUT

IF box 8 was for more than one state ..... and IF (**IF**) you want to break out your state's bonds from all the rest....  First, you must have the state % listing from your Broker/Financial provider for that 1099-INT form. And you need to calculate the exact $ amount yourself

See the picture below:

..Your State Breakout.

(Example for North Carolina, insert your state in place of "NC")

1) For the main 1099-INT, you put in all the other boxes that show in the 1099-INT that you were sent.

2) Then step thru the Next pages to get to one labeled "Tell Us More About Your Exempt Dividends" (or interest).

3)  Either select "More than one state" in the upper box if the $ came from a variety of states (that's easiest). or IF you are sure the $$ came from ONLY bonds issued by your own state (unusual), you can select your state.....but not otherwise.

OR....IF you have a bond fund which has a mixture of bonds, and the sheet that shows the state breakdown....then you can"...(but do not have to....i.e. just use step 3 and move on))

4) Check the box and start breaking out the total $$ from box 8 that were from your resident state.

_________________

If significant, you can also break out the Tax-Exempt $$ from US territories too. (Guam, Puerto Rico.... etc)

....but all the other states and DC remain together as "More Than One State"

_________________________

IF your mutual fund breaks out the separate private activity bond $$, then you actually have to create a separate 1099-INT  form for just those $$.

[BillMar472]

Thanks for this posting. It cleared up a problem for me. I hope you are still posting in the 2020 tax season. Very through answer.

[ElleGee]

I am caught in this "multiple states" loop. I have selected the One state, then chosen the Multiple states option, but my final review still insists that I enter "State ID where exempt interest was earned. If more than 1 state, see Help".  I am at my wits end! Is there some code that I can enter that will signif multiple states or satisfy this form requirement?

Elle Gee

[SteamTrain]

@ElleGee 

That could be a form for which you have not enter it yet.

1)  IF you are in the final "Review", you can enter "XX"  in the box provided, and it should move on for you.

_________________________________________________________________________________

2)  If you are entering your actual 1099-DIV, or 1099-INT in the interview, you need to make the "Multiple States" selection for every 1099-INT or 1099-DIV  that has tax exempt interest in it  (unless you are attempting to break out the $$ from your own state's bonds)....and you could have missed one (or more) if you have multiple forms for those two 1099-??? form types.  Check your form K-1's too if you entered any of those.

3)  You could also delete which form you think is causing the problem...go thru the Review to confirm it was the one causing the problem (no error remaining), then go back and re-enter it again manually and run the Review again to make sure it's now OK.  Sometimes a form has some garbled characters in it that causes an issue.