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Interest and dividends

Enter tax-exempt interest reported on Schedule B

Do the following to enter tax-exempt interest reported on Schedule B:
  1. Open the
    Income
     input folder.
  2. Select the
    B&D
     screen or the
    Broker
     screen. Only use the
    Broker
     screen if you want to enter a consolidated 1099.
  3. Select the
    Interest income
     statement and complete the following columns:
    • F/S
      : If the interest is federal-only or state-only, code it as federal or state. To report the interest on both federal and state, leave this field blank.
    • TSJ
      : Code the interest 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
      Interest income
       statement automatically picks up the code from there.
    • Payer
      : Enter the payer name.
    • Tax Exempt
      : Enter the total tax-exempt interest amount, including interest income attributable to private activity bonds issued after 8/7/86.
    • AMT Int Income (PAB)
      : Enter the amount of interest income attributable to private activity bonds issued after 8/7/86. UltraTax CS uses this amount for Form 6251, Alternative Minimum Tax. Remember to make sure to include this amount in the
      Tax Exempt
       field.
    • In-State Muni $ or %
      : If any tax-exempt interest is nontaxable to the state, enter the amount of nontaxable state interest in this field. If you enter a percentage, UltraTax CS will automatically calculate the nontaxable amount by applying the percentage to the amount you entered in the
      Tax Exempt
      field. If the state field is blank, UltraTax CS uses this amount/percentage for the resident state calculations. To use this amount on a part-year or nonresident state return, enter the state this income is nontaxable for in the
      State
       field.
  4. If you skipped fields during these steps, complete them as needed or to get the result you need on Schedule B.
  5. The IRS doesn't require tax-exempt interest to be reported separately on Schedule B, but you can do so via
    Setup
    ,
    1040 Individual
    ,
    Other Return Options
    , then the
    Return Presentation
     tab. From there, mark the
    Print tax-exempt interest and dividends on Schedule B
     checkbox.
note
UltraTax CS generates a nonsubmittable statement that gives detail 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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