1099-div exempt interest-dividend how to enter and should I for TX?

[anonymous2]

This is latest Windows Desktop edition of TurboTax 2022. 

Part of the interview that deals with entering information from 1099-div forms.

My brokerage has some information entered in boxes 12 and 13

12 Exempt Interest Dividends ...................................................................................$xx. Less than 100$
13 Specified Private Activity Bond Interest Dividends.................................................$xx

This brings me to the page :

Which state are you $xx of exempt interest-dividend from?

The help menu states:
You can select More than one state and continue if you: - Live in a state with no income tax (AK, FL, NV, SD, WA, WY)

1. Why is TX no under the list? AFAIK the state does not tax ANY income

2. Where do I find the information about which state(s) paid this exempt income? Went through the 1099-DIV and can't find anything :
14 State..............................................................................................................................  is blank

Should I enter anything at all, nothing at all? where?

[hbl3973]

anonymous2,

You are correct that this really has no impact on Texas residents because TX has no state income tax.  You can leave it blank.

The reason this question appears is that states that do have income tax do not exempt municipal bond income that came from bond from other states.

The question isn't hidden away from TX residents because some may still need to file state returns for other states because, for example, they may have moved to TX during the year.

[SteamTrain]

@anonymous2 

BUT...the tax software may complain during reviews and error checks if you try leave the selection blank....or not selected at all.   

So I strongly recommend that you Just scroll to the bottom of the dropdown list of states, and select "Multiple States" as the selection.  

(Desktop software uses the selection term as  "More than one state"......Online software uses "Multiple States" )

[anonymous2]

it doesn't appear to be hidden from anyone. But the help menu mentions 

Live in a state with no income tax (AK, FL, NV, SD, WA, WY)

but TX is not on the list. Is this a mistake by TurboTax or some reason why TX is different from other stats with no income tax?

[SteamTrain · Accepted solution]

Probably just an overlooked typo or misprint....looks like they have overlooked that in the 1099-INT help link too for those exempt interest- dividends too.   Also missed TN, as a relatively new additional state to be put in too.

[SteamTrain · Accepted solution]

Hey  @DoninGA   You're around this morning.

Maybe tag the Moderators to get the "Desktop" programmers to fix the Help screen text for Exempt-Dividends to include TX and TN.    The same states are missing in both the 1099-DIV and-INT help screens.

The Online 1099-DIV form seems to be OK, but the Online 1099-INT doesn't have a help screen at all when asking what state the exempt-interest dividends came from.

________

Here's what the Desktop software shows:

(Also...don't know if the DC and IN exemptions still exists...someone having insight in those "states" might need to be researched)

[DoninGA]

@SteamTrain Got it.  Just posted to the Moderators.