Not real familiar with these kind of statements. Have exempt interest listed for the federal return but some of the interest was earned in another state other than the taxpayers'. Does this interest have to be added back on the state?
-
-
Earned on what?
Do you mean earned on tax-exempt bonds of other states? In that case, the answer is yes, it has to be added back.Evan Appelman, EA -
Bonds from US territories
Although you need to add interest from other states as taxable to home state, you don't need to add back in interest from territories such as Puerto Rico,Guam and Virgin Islands...I believe! (It's been a while since I checked on this...but that is my recollection.)Comment
-
Need to find the amounts for each state
The brokerage firm, or the bond funds themselves, should provide you the breakdown of the income by individual states.
Frequently the answer is as simple as going to the website for the funds and looking for "tax information."
Origun also raises a point, although from experience the % of income from those quasi-federal territories, or whatever category they fall into, are generally quite small. Depends on how "picky" you wish to be.
FEComment
-
Depends on the individual state. In CA only CA bonds are exempt except for some territories and depending on % of holding. I have an NJ client who holds bonds from the tri-state area. These are exempt for NJ purposes. Gotta do your homework on this one.Comment
Comment