Tax FAQ
 

Are Tax Exempt Dividends To Be Reported On Form 1040, As Is Tax Exempt Interest?

Question by osoteo2006 | Posted in United States

One of my 1099 DIV providers stated that tax exempt dividends are to be included on interline 9a, but the IRS instructons say nothing about this.

Answer: Yes. The IRS didn't lavish much time on these instructions since tax exempt dividends provide no tax revenue for the IRS.
 
 

Tax Exempt Interest In UK Taxable In US?

Question by Germain Mariolle | Posted in United States

Hi,
my trouble is a US citizen in the UK and she has been filling her 1040 with her wage only. However, this year, she will have the interest/dividends from her Share ISA which in the UK is tax exempt.

Should she be innards those under the section 8b "tax exempt interest" in her 1040 or will it be taxable under section 8a?

thank you!

 
 

How Do You Report Tax Exempt Interest On Zero Coupon Municipal Bonds-as It Accrues Annually Or Upon Maturity?

Question by Suz | Posted in United States


Answer: Why do you necessity to report the interest if it is tax exempt? (well, you still need to report but it is not taxable for regular tax purposes but might be subject to AMT)

Zero coupon muni bonds are exempt from federal tax (at least for acknowledged tax, might or might not be exempt for AMT, you need to check with the issuer on that), and in many cases, exempt from state and local taxes too.

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Tax Exempt Interest - Federal Only, Not State?

Question by SM S | Posted in United States

If the tax exmpt interest is only for Federal, not for any states. However, in earmark B (1099-int), box 8 asks for State ID, can I just leave it blank? But Turbo tax software dedects this as an solecism. Please advise. Thanks

Answer: For turbotax online, infiltrate "XX" as the state code. This worked for me.

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What Is The Purpose Of Line 8b (tax-exempt Interest) On Form 1040?

Question by Rob | Posted in United States

An access on Line 8b has no effect on the Total Tax on Line 60. What reason does the IRS have to dearth/need to know this information?

Answer: As for WHY you have to communication it, it is income. It affects taxability of social security income. It is included in MAGI when determining eligibility for EIC. When the bonds are sold, it can agency capital gains/losses. If you claim sales tax on schedule A, it's used to add up the standard amount.

Have you have been reading internet SPAM?

ANYONE in ANY state can purchase tax-free town bonds and get tax-exempt interest income. That interest is reported on line

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HOW DO YOU REPORT TAX EXEMPT INTEREST ON ZERO COUPON MUNICIPAL ...

by admin

Zero coupon muni bonds are exempt from federal tax (at least for uniform tax, might or might not be exempt for AMT, you desideratum to be verified with the issuer on that), and in many cases, exempt from body politic and particular taxes too. Why do you dire to article the interest if it is tax exempt.

Source: HOW DO YOU REPORT TAX EXEMPT INTEREST ON ZERO COUPON MUNICIPAL ...

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