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Income

Enter source interest or dividend income for a nonresident state tax return

Follow these steps to enter dividend and interest income for a nonresident state tax return. Each line in the statement should be a separate entry. You have to enter a ZIP Code, state use code, and source amount or percent for each line.
note
We recommend that you enter income for U.S. government obligations on a separate line from state source income.
  1. Select the Income folder to open the
    Income
     screen.
  2. Select the statement button for the
    Interest income (including foreign source)
     field.
    note
    The same statement is available on the K1 and K1T screens for the
    Interest income including tax-exempt
     field, or the Broker screen for the
    Interest income (including foreign source)
     field.
  3. In the statement, enter a description in the Payer column.
  4. Enter the amount in the Taxable Interest column.
  5. Enter a ZIP Code in the Postal Code column.
    note
    If this column is blank, the state doesn't recognize the amount as source.
  6. Enter an amount or percent in the In State Source ($ or %) column to indicate the portion of the Taxable Interest column that's source income for the state in the Postal Code column.
    note
    If this column is blank, taxable interest isn't considered source income.
  7. If you're preparing multiple-state tax returns, use the F/S column. Make duplicate line entries for each state, using a different ZIP Code and source percent for each entry.
  8. In the
    F/S
     field, enter
    S
    for all but 1 of the duplicate line entries. The federal application ignores entries coded with
    S
    .
  9. Enter
    F
    in the
    F/S
     field if the item applies to only the federal return.
  10. If the State Use column is available, select a code.
    note
    Many 1041 state returns only consider Code 10 - Business interest as source income.

This article applies to:

  • PRODUCT: UltraTax CS
  • Return type: 1041 Fiduciary

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