Enter tax-exempt interest reported on Schedule B
Do the following to enter tax-exempt interest reported on Schedule B:
- Open theIncomeinput folder.
- Select theB&Dscreen or theBrokerscreen. Only use theBrokerscreen if you want to enter a consolidated 1099.
- Select theInterest incomestatement 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.
- TSJ: Code the interest to the Taxpayer, the Spouse, or as Joint. This field doesn't exist if you come from theBrokerscreen because the entireBrokerscreen is coded to the Taxpayer, Spouse, or Joint and theInterest incomestatement 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 theTax Exemptfield.
- 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 theTax Exemptfield. 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 theStatefield.
- If you skipped fields during these steps, complete them as needed or to get the result you need on Schedule B.
- The IRS doesn't require tax-exempt interest to be reported separately on Schedule B, but you can do so viaSetup,1040 Individual,Other Return Options, then theReturn Presentationtab. From there, mark thePrint tax-exempt interest and dividends on Schedule Bcheckbox.
note
UltraTax CS generates a nonsubmittable statement that gives 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
