Minnesota Bond Premium Adjustment

[DENNYCARR]

Error: Schedule M1M - sum of line 1 & line 2 doesn't match Form 1040 line 2a.

The difference is $7k and is the amount of Bond Premium for Tax Exempt Bond

Schedule M1M Line 1 = Tax Exempt Interest

Schedule M1M Line 2 = Exempt-Interest Dividends

Form 1040 Line 2a = Tax Exempt Interest + Exempt-Interest Dividends - Bond Premium for Tax Exempt Bond

Where do I report on the Minnesota return the Bond Premium to make these numbers equal?

[IRonMaN]

I always just enter tax exempt dividends as tax exempt interest.

[DENNYCARR]

Do mean that you report 1099-DIV Box 12 Exempt-Interest Dividends under 1099-INT Box 8 Tax Exempt Interest on the Federal Schedule B?

Doesn't that create another error because I would now be misreporting the 1099-DIV/INT?

[DENNYCARR]

Changing that does not change the Minnesota return to reflect the Bond Premium reduction in tax exempt interest...

[IRonMaN]

I've been reporting it that way since a little bit before dirt and I'm still walking the streets a free man 😉

[DENNYCARR · Accepted solution]

Fair enough.