Tuesday, June 23, 2009

Tax-exempt interest

For individual taxpayers:

If tax-exempt interest income is reported on form 1099-INT, then you need to enter a “1” in the column labeled “Code.” This indicates it was reported on a 1099-INT for tax-exempt income.

Another way to enter this code is to go to worksheet Income/Deductions > Interest > 4 Tax-Exempt Interest, Box 3.

Thanks!

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