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Interest and dividends

Enter municipal and tax-exempt dividends reported on Schedule B

Do the following to enter municipal and tax-exempt dividends and report them on Schedule B and Form 1040, line 2a:
  1. Go to the
    Income
     folder.
  2. Select either the
    B&D
     or
    Broker
     tab. Only use the
    Broker
     screen if you want to enter a consolidated 1099.
  3. Select the
    Dividend income
     statement and complete these fields:
    • F/S
      : If the dividend income is federal-only or state-only, code it as federal or state. If the dividend income should be reported on both federal and state, leave this field blank.
    • TSJ
      : Code the dividend income to the Taxpayer, the Spouse, or as Joint. This field doesn’t exist if you come from the
      Broker
       screen because the entire
      Broker
       screen is coded to the Taxpayer, Spouse, or Joint and the
      Dividend income
       statement automatically picks up the code from there.
    • Payer
      : Enter the payer name.
    • Tax Exempt amount
      : Enter total tax-exempt dividends (including dividend income attributable to private activity bonds issued after 8/7/86).
    • AMT Exempt Div (PAB)
      : If a portion of the tax-exempt income is attributable to private activity bonds issued after 8/7/86, enter the amount. UltraTax CS uses this amount for Form 6251, Alternative Minimum Tax.
    • In-State Muni $ or %
      : Enter the portion that's nontaxable to the state you entered in the
      State
       field.
  4. If you skipped fields during these steps, fill them in as needed for your client or to get the result you need on Schedule B.
  5. The IRS doesn't require tax-exempt dividends to be reported separately on Schedule B, but you can do so via
    Setup
    ,
    1040 Individual
    ,
    Other Return Options
    , the
    Return Presentation
     tab, then mark the
    Print tax-exempt interest and dividends on Schedule B
     checkbox.
note
UltraTax CS generates a nonsubmittable statement that gives details on all tax-exempt income reported on line 2a. The statement includes amounts you enter on these screens:
  • B&D
  • Broker
  • K1-2
  • K1T

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