Where do I enter MN tax-exempt interest of Federal Securities on MN Tax form??

[Taxlax]

I got recently a consolidated Tax form from Vanguard which gives information on Federal Securities exempt from State Tax but not Federal Tax. I use TurboTax Deluxe with MN state software. I cannot enter this on No: 12 as these are not Federally exempt. Advice on how and where I can enter these numbers to get MN Tax benefits. Thanks.

[SteamTrain · Accepted solution]

OK....if these are from actual Mutual bond funds you own?   Correct...not in box 12.  Box 12 is only for tax exempt Muni funds.

____________________

For a 1099-DIV

You need to use the supplemental data, and calculate the exact $$ amount that came from US Govt Securities for that particular fund.   Usually, these will only be for Bond Funds, or Money market funds.

For instance, if you might have a MMarket Fund that issued $1000 of box 1a ordinary dividends, and 30% of those $$ were from US Govt securties....that's $300.

You do that for each fund that held some known % of US Govt securities, and add those sub$$ amounts together.

___

Then, you enter the 1099-DIV, just as shown on your Paper/PDF of 1099-DIV,  "Continue" to the next page, and there is a checkbox where you check "A portion of these dividends is US Government interest"

"Continue" to the next page, and there is a box to enter the US Govt subtotal you calculated, and those $$ will not be included as state income.

Then continue thru the rest of any pages for that form (shouldn't be any...unless your 1099-DIV did have some box 12 $$)

Save a sheet with your individual fund calculations in your tax file folder.....so you can see later what you calculated and how...should it become necessary later to show those calculations.