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R. Klein, EA
R. Klein, EA, Enrolled Agent
Category: Tax
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Experience:  Over 20 Years experience
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How to figure tax from a Tax Exempt bond fund owned 2+ years

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How to figure tax from a Tax Exempt bond fund owned 2+ years ?
1099-DIV column 11 " Specified Private Activity Bond Interest Dividends".

Also,
How to figure 1099-DIV 1b qualified dividends ?

Randalltax :

Thanks for your tax question.

Randalltax :

There is no federal tax on a Tax Exempt bond fund. There is state tax unless the fund or a portion of the fund is also exempt in your resident state.

Randalltax :

You should not need to figure Qualified Dividends. It should show on your 1099DIV form. If the box is blank, then you have no qualified dividends.

Randalltax :

Qualified Dividends is a subset of total dividends.

Randalltax :

In other words Box 1b is a portion of 1a.

Randalltax :

Private Activity Bonds (PABs in Box 11) is only used for computing the Alternative Minimum Tax (AMT) on Form 6251

Randalltax :

If you are not subject to AMT, then you will not use this number.

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