In the Indiana state income tax return, interest received on state or municipal obligations outside Indiana which were acquired after December 31, 2011 are not subject to tax in your Federal income tax return but is taxable on the Indiana state income tax return.
In the Indiana state income tax return, you are allowed to adjust the amount of interest from out-of-state obligations acquired after December 31, 2011 at the screen Interest on Out-of-State Municipal Obligations.
Your broker may provide a breakdown of the municipal interest by state to allow you to report this amount.
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