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Income

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

Follow these steps to enter tax exempt interest or dividend income that's considered source tax-exempt income for a state tax return.
  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 on the Broker screen for the
    Interest income (including foreign source)
    field.
  3. Enter a ZIP Code in the Postal Code column.
    note
    If the Postal Code column is blank, the state won't recognize the amount as source income.
  4. Enter an amount or percent in the In State Muni ($ or %) column to indicate the portion of the Total Tax Exempt column that's considered source tax-exempt income for the state indicated in the Postal Code column.
    note
    If this field is blank, no portion of the tax-exempt income is considered source tax-exempt income.
    note
    • Each line in the statement is a separate entry. A ZIP Code and source amount or percent is necessary for each line.
    • Enter private activity bond interest amounts in both the Total Tax Exempt column and the Private Act Bond Portion column. Form 1041, Schedule I uses the private activity bond amount.
    • The same columns are available for the same purposes in the statement for the
      Dividends (including foreign source)
       field.

This article applies to:

  • PRODUCT: UltraTax CS
  • Return type: 1041 Fiduciary

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