Is Box 12 of 1099-DIV included in Turbotax question "A portion of these dividends is U.S.Government interest?"

[hbl3973]

ABeegs,

Nope, Box 12 is for dividends that are exempt from federal tax.

To find the US Government interest portion, you have to go to supplemental tax information provided by the mutual fund or broker.  It is often included with your statement by big outfits like Fidelity but not always.  If you are willing to share the name of the particular investment, I will be happy to research it and show you the steps I took to find that information.

The reason TurboTax asks about US Government interest is that it may be excluded from state taxation.  The rules for exclusion vary by state.  In Colorado, any amount of US Government interest is excludible.  In California, more than half of the income of the fund has to be from such sources.  If you are willing to share your state, I can look that info up for you, too.

[JulieS]

No, your box 12 amount is dividends from investments that are exempt from federal tax. 

In most cases, that would be mutual funds composed of municipal bond investments. Municipal bonds are issued by state and local governments, not the US government. 

This question is asking how much of your taxable dividend income is from US government interest. In some states, US government interest is not taxed on your state return. 

There is a separate question to determine if your box 12 dividends are taxed by your state. That is addressed on the screen, Tell us more about your exempt-interest dividends. 

[ABeegs]

I actually have the breakdown for Box 1A and Box 12, thank you. The dividends from Box 1A (or should it be 1 B?) have a small % from US Gov Securities, which includes U.S. Treasury, Fed Home Loan and Fed Farm Credit. But where do I deduct Box 12 Fed tax-free amount for money earned in my state? Thanks for your help.

[hbl3973]

I think JulieS has answered your followup question, but let us know if you need more guidance.  

[joel999]

Hello, I have the same question.  I agree that that number is not what is in box 12 but I still don't see how to find that information from my 1099-DIV, or the supplemental details form.  The account is with TIAA Brokerage.  Thanks!

[hbl3973]

joel9999,

The TIAA site says on page https://www.tiaa.org/public/support/tax-statement-schedule  that you should go to the website https://bny.mn/TaxResources  and follow the instructions there to use the Tax Supplemental Information tool on the right hand side of that page.  That tool states:

To help you complete your tax returns, our Supplemental Information tool provides the percentage of tax-exempt, in-state municipal income and the percentage of income from government agencies and the direct federal and foreign sources for a particular fund.  You multiply the Box 1 dividend by the percentage given by that tool to yield the government agency portion.  The in-state municipal income percentage for your state will also be useful as 100 minus that percentage is the portion that will be taxable by your state.

You should also be able to go to the website of each individual investment mutual fund and dig the state information from there.

[freaksells]

Hello, 

I am not able to find this information either. The only box on my 1099-DIV that has any information is box 1a and my 1099-DIV did not include a Supplemental Information sheet. I also contacted the broker and they have not been helpful at all.  So my question is if I actually need to determine the amounts and enter in this information? If this information is only used to reduce my state taxes, is it necessary for me to provide it?

Thank you much!

[hbl3973]

You are correct that you don't need the % US info.  It is used to potentially reduce state tax.  However, brokers aren't going to give you those details for any funds that they don't own.  You would need to look up the website tax information in each mutual fund and ETF in your brokerage account.

[jeg1422aolcom]

I am being charged on the full amount of my box 12 on my Arizona tax return. Is this correct?

[jeg1422aolcom]

My box 12 exempt-interest dividends are not being taxed on my Federal return, but my Arizona state return wants to tax them at 100%.  Is this correct?

[LindaS5247]

There is a separate question to determine how your box 12 dividends are taxed by your state.

That is addressed on the screen, "Tell us more about your exempt-interest dividends."  When you enter your Form 1099-Div into TurboTax pay close attention to all prompts and questions, especially as they pertain to your state,

You may want to try and delete the Form 1099-DIV and start again.

Likely, your state will tax all dividends, except the dividends from municipal bonds from your state.  The provider of your Form 1099-DIV should be able to answer this.  The source of your dividends is key.

Some dividends that are not taxable on your Federal Tax Return may be taxable on your Arizona State Return and TurboTax is adding them back for that purpose. 

For example, a special deduction claimed on the federal return for dividends received under IRC Sec. 243 and IRC Sec. 245 must be added to federal taxable income in computing Arizona taxable income. In addition, for tax years beginning after 2018, Arizona law states that the amount of dividend income received from corporations and allowed as a deduction pursuant IRC Sec. 245A (participation dividends received) and IRC Sec 250(a)(1)(B) (global intangible low-taxed income) must be added back as well.

[hbl3973]

jeg1422aolcom,

While LindaS5247 has provided you with a comprehensive general solution to your query, if you are willing to share the name of the mutual fund that provided you the Box 12 dividends, I will be happy to track down the specific percentage that of that dividend that is taxable by AZ.  

[mcassity40]

ABeegs,

Can you provide for WI  - Box 12 on 1099-Div and trying to get the correct number for WI non taxable amount - Thank you

[BIG D1]

Thank you!