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Level 2
March 20, 2023
Question

tax exempt interest

  • March 20, 2023
  • 1 reply
  • 10 views

It looks like the tax exempt dividends (1099 DIV, box 12) is not taxed by the federal government on my TT return. However, that full amount was added back in on my Oregon state return (Schedule OR-ASC, line A5).  If half of that amount from box 12 was a US govt security ("Ishares Trust US Treas BD ETF", with detail indicating it was Nonqualified dividends), is that half portion also deductible from the addition that was made on the Oregon return?  

    1 reply

    Mike9241
    Level 15
    Level 15
    March 21, 2023

    box 12 is municipal interest, not US interest. so that would be taxable for state.  note that many US ETFtfs/mutual funds etc earn some of their income on US government derivatives which generally are not state exempt. 

    Mike9241