How do I know which state to fill? Lord Abbett High Income Municipal Bond

Forum|Forum|1 year ago
April 12, 2025
1 reply
11 views

Has anyone had experience with the Exempt-Interest Dividends? On the additional dividend worksheet.

My client lives overseas and doesn't file state tax returns.

Thanks.

ProSeries Basic

This topic has been closed for replies.

Best answer by BobKamman

On tax-exempt bond funds with multiple states, I just enter any state except the one where the client resides. IRS doesn't care, and the resident state just wants to tax everything but its own. If you want to do $25 worth of work to save your client $5, then find the percentage of the fund's interest that comes from the resident state, plus Puerto Rico and US possessions. Might come out to 5%, so with $8,000 of dividends you can make two entries and allocate $400 to resident state. Which at a tax rate of 2.5% (as in my state) saves $10.

BobKammanAnswer

Level 15

On tax-exempt bond funds with multiple states, I just enter any state except the one where the client resides. IRS doesn't care, and the resident state just wants to tax everything but its own. If you want to do $25 worth of work to save your client $5, then find the percentage of the fund's interest that comes from the resident state, plus Puerto Rico and US possessions. Might come out to 5%, so with $8,000 of dividends you can make two entries and allocate $400 to resident state. Which at a tax rate of 2.5% (as in my state) saves $10.

H

helenyinAuthor

Level 5

Thank you for sharing the details.

Ok. I'll give it a try.

Sign up

Login with SSO

Let's get you signed in

Login with SSO

Scanning file for viruses.

This file cannot be downloaded