1041-US: Entering income that is tax-exempt at the federal level (FAQ)

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Question

How do I enter income from a state, local, or municipal bond that is tax-exempt at the federal level, but taxable at the state level?

Answer

In the statement dialog for the Interest income field or the Dividends field on Screen Income, K1, or K1T, enter the tax-exempt amount, including income attributable to private activity bonds issued after August 7, 1986 in the Tax-Exempt Amount field only. On the same line as the amount entry, enter the portion that is nontaxable to the integrated state in the InState Muni ($ or %) field.

Related topic: 1041-US: Tax-exempt income FAQs

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