How do i know if i have exempt dividends? What is being referred????
Schedule B: Box 10 - Exempt-interest dividends-2 from CA , received from payer #2, must be entered. ???
If you have a Form 1099-DIV with an amount in box 10, these are exempt interest dividends. This would be interest earned from bonds on municipalities or states, not US government bonds. They are not taxed on the federal return, but could be considered for alternative minimum tax, if applicable. TurboTax will calculate this.
The payer of the dividends would include information documents explaining which state they were derived from and if it is your resident state they would not be taxed on your state return. If they are from another state, they would be taxed on your state return.
To check dividend entry you can use the steps here:
If you have a Form 1099-DIV with an amount in box 10, these are exempt interest dividends. This would be interest earned from bonds on municipalities or states, not US government bonds. They are not taxed on the federal return, but could be considered for alternative minimum tax, if applicable. TurboTax will calculate this.
The payer of the dividends would include information documents explaining which state they were derived from and if it is your resident state they would not be taxed on your state return. If they are from another state, they would be taxed on your state return.
To check dividend entry you can use the steps here: