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-INT or 1099-OID, see Form 1099-INT Data entry and/or Form 1099-OID Data entry.

Otherwise, to enter tax-exempt interest reported on Schedule B:

1. Open the Income input folder.
2. Click the B&D screen or the Broker screen. Only use the Broker screen if you want to enter a consolidated 1099.
3. Click the Interest income statement and complete the following columns:
   • F/S: If the interest is federal-only or state-only, code it as federal or state. To report the interest 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 interest 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 Interest income statement automatically picks up the code from there.
   • Payer: Enter the payer name.
   • Tax Exempt: Enter the total tax-exempt interest amount, including interest income attributable to private activity bonds issued after 8/7/86.
   • AMT Int Income (PAB): Enter the amount of interest income attributable to private activity bonds issued after 8/7/86. UltraTax CS uses this amount for Form 6251, Alternative Minimum Tax. Remember to make sure to include this amount in the Tax Exempt field.
   • In-State Muni $ or %: If any tax-exempt interest is nontaxable to the state, enter the amount of nontaxable state interest in this field. If you enter a percentage, UltraTax CS will automatically calculate the nontaxable amount by applying the percentage to the amount you entered in the Tax Exempt If the state field is blank, UltraTax CS uses this amount/percentage for the resident state calculations. To use this amount on a part-year or nonresident state return, enter the state this income is nontaxable for in the State field.
4. If you skipped fields during these steps, complete them as needed or to get desired result on Schedule B.

Nominee, accrued, OID, or ABP Adjustments

To add to the tax-exempt interest amounts, do not manually adjust the amount in the Tax Exempt field. Instead:

1. Create a second line in the Interest income statement.
2. Enter code 3, 4, 5, or 6 in the Type code field.
3. Enter the adjustment as a positive amount in the Interest income field.

UltraTax CS calculates a subtotal for each code and reports it on Schedule B.

Report tax-exempt interest on Schedule B

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