I'm a CA resident and my 1099-DIV shows Exempt Interest Dividends which I know are reported on 1040, line 2a. But I'm unsure if and/or how much of those funds I need to include as Additions to my CA income on my CA 540.
The total amount is comprised of two funds with CUSIPs: 650914104 and 001419688. From what I can tell, only 8.71402% of the second fund would be tax-exempt for CA and the remainder of both funds would need to be included as an addition to my CA income. Is that right?
This is my first time preparing a return on my own with a 1099-DIV, and in looking at the one my tax preparer did last year, these same two funds were reported on the 1099-DIV, but they didn't include any additions to my CA income. Does that sound right? Or am I completely misunderstanding how this works?
Consolidated 1099 and CA Tax-Exempt Dividends
byu/DismalSuspect5524 intax
Posted by DismalSuspect5524
1 Comment
California requires money market funds to have at least 50% of assets in U.S. government securities at each quarter-end of the tax year for state tax exemption.