CA tax-exempt funds and TurboTax

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drew
Posts: 56
Joined: Tue Mar 27, 2007 12:04 pm

CA tax-exempt funds and TurboTax

Post by drew »

I hold a couple of CA tax-exempt municipal bond/money market funds and received the 1099-INT forms for them. After entering the information in TurboTax and running the federal review, I'm receiving an error saying that they need a state ID for the state from which the tax-exempt income was received. This information does not appear to be on the 1099-INT nor on any of the accompanying explanatory brochures. Has anyone run into this? Thanks in advance!
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tfb
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Joined: Mon Feb 19, 2007 4:46 pm

Post by tfb »

When you enter the number, the next screen asked you which state the income came from. Go back and make sure you marked Calif. there. Vanguard's CA tax-exempt funds are 100% in that state.
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Topic Author
drew
Posts: 56
Joined: Tue Mar 27, 2007 12:04 pm

Post by drew »

Just to expand in case anyone else runs across this problem, I imported the 1099-INT from Vanguard. Apparently this import did not run through the full interview section for tax-exempt interest.

As TFB suggested, I went back to the "Interest on 1099-INT" section (not the "Tax-Exempt Interest" section) and edited each of the entries for the CA tax-exempt funds. After just accepting each of the imported entries by clicking "Continue" through to the end, including the last screen which asks from which state the interest originated, I re-ran the review and it passes without issue. Thanks for the reply!
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