How do I know if my bond interest is tax-exempt?
All of your municipal bond interest is tax-exempt for federal purposes.
For state purposes, we need to know if your bond was issued by a city, government or other political entity within the state that you live.
For example, if you lived in California and held San Diego municipal bonds, you'd answer Yes to this question (even if you lived in San Francisco), then enter all of the bond interest as being in-state.
If only PART of your bond interest was from within the state you live, answer Yes, then only enter the amount that was from an entity within your state.
Also, if you only lived in the state for PART of the year, answer Yes, then only enter the amount you earned while you lived in the state.
We also need to know if your bond was issued by a U.S. Territory such as Puerto Rico as these bonds are tax-exempt for federal and all states, regardless of which state you live in. If you received interest from a U.S. Territory bond, include that amount here.
We'll calculate the amount that is or isn't taxable on your state return based on what you enter as being interest from in-state or U.S. Territory bonds.
Generally, tax-exempt interest and dividend income is reported on year-end statements or a statement from your broker or mutual fund company. The bonds issued by a state are usually listed on the last pages of the statement.
For state purposes, we need to know if your bond was issued by a city, government or other political entity within the state that you live.
For example, if you lived in California and held San Diego municipal bonds, you'd answer Yes to this question (even if you lived in San Francisco), then enter all of the bond interest as being in-state.
If only PART of your bond interest was from within the state you live, answer Yes, then only enter the amount that was from an entity within your state.
Also, if you only lived in the state for PART of the year, answer Yes, then only enter the amount you earned while you lived in the state.
We also need to know if your bond was issued by a U.S. Territory such as Puerto Rico as these bonds are tax-exempt for federal and all states, regardless of which state you live in. If you received interest from a U.S. Territory bond, include that amount here.
We'll calculate the amount that is or isn't taxable on your state return based on what you enter as being interest from in-state or U.S. Territory bonds.
Generally, tax-exempt interest and dividend income is reported on year-end statements or a statement from your broker or mutual fund company. The bonds issued by a state are usually listed on the last pages of the statement.
