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PS1580
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Tax-exempt 1099 Interest amounts not matching

I have municipal bonds from both my state of residence (PA) and other states held in a brokerage account . The interest on PA bonds are excluded in my state taxable income. So I need to enter my tax exemption amounts separately. The problem is my 1099-INT Line 8 amount is higher than the breakdown at the end of my broker reporting form where tax-exempt interest totals are shown, for both out- and in-state. The totals at the end are higher than the Line 8 amount exactly by a reported amount of "tax-exempt non-qualified interest." How do I make the program reconcile the two totals?

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1 Reply

Tax-exempt 1099 Interest amounts not matching

Taking TT out of the picture for the moment, are you saying your broker reported a 1099-INT Line 8 which is higher than the cusip-level interest breakdown they provided, by this "tax-exempt non-qualified interest" amount.  I've not seen this term in muni interest reporting (a muni MM fund may have non-qualified dividends), do you have any breakdown or example what they are referring to?

 

If TT is having some issue with import etc just delete and add manually, though it sounds like you are entering manually and separate PA tax exempt from PA taxable - if so this is best way to do it, to get the correct accrued interest adjustments (TT doesn't know how to apply adjustments between Box 1/3/8 or PA/non-PA)

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