New (tax) year, new help!

Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

If you have a 1099-DIV, see Form 1099-DIV data entry. 

Otherwise, to enter municipal and tax-exempt dividends and report them on Schedule B and Form 1040, line 2a:

1. Go to the Income folder.
2. Click either the B&D or Broker tab. Only use the Broker screen if you want to enter a consolidated 1099.
3. Click the Dividend income statement and complete these fields:
   • F/S: If the dividend income is federal-only or state-only, code it as federal or state. If the dividend income should be reported on both federal and state, leave this field blank. If there are multiple states on the return, see Entering interest and dividend income for a multi-state return.
   • TSJ: Code the dividend income to the Taxpayer, the Spouse, or as Joint. This field does not exist if you come from the Broker screen because the entire Broker screen is coded to the Taxpayer, Spouse, or Joint and the Dividend income statement automatically picks up the code from there.
   • Payer: Enter the payer name.
   • Tax Exempt amount: Enter total tax-exempt dividends (including dividend income attributable to private activity bonds issued after 8/7/86).
   • AMT Exempt Div (PAB): If a portion of the tax-exempt income is attributable to private activity bonds issued after 8/7/86, enter the amount. UltraTax CS uses this amount for Form 6251, Alternative Minimum Tax.
   • In-State Muni $ or %: Enter the portion that is nontaxable to the state you entered in the State field.
4. For fields that were skipped during these steps, fill them in as needed for your client or to get your desired result on Schedule B.

Nominee amount adjustments

If you need to make an adjustment for nominee amounts, do not manually adjust the total dividend amount. Instead:

1. Create a second line in the Dividend income statement.
2. Enter code 3 in the Type code field.
3. Enter the adjustment as a positive amount in the same column that you entered the total dividend income in.

UltraTax CS calculates a subtotal of items with type code 3 and subtracts the nominee amount on Schedule B.

Report tax-exempt interest on Schedule B

The IRS does not require tax-exempt dividends to be reported separately on Schedule B, but you can choose to in Setup > 1040 Individual > Other Return Options > Return Presentation tab and mark the Print tax-exempt interest and dividends on Schedule B box.

Form 1040, line 2a

UltraTax CS generates a nonsubmittable statement that give detail on all tax-exempt income reported on line 2a. The statement includes amounts you enter on these screens: B&D, Broker, K1-2, K1T.

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