Boxes 12 and 13 of Form 1099-DIV relate to tax-exempt dividends and, in some cases, the Alternative Minimum Tax (AMT). Although these amounts may not affect your regular taxable income, they still need to be reported correctly on your tax return.
Box 12: Exempt-Interest Dividends
Amounts reported in Box 12 of Form 1099-DIV represent exempt-interest dividends.
These dividends are generally paid by mutual funds that invest in municipal bonds. While the income is typically exempt from federal income tax, it still must be reported on your return.
To enter exempt-interest dividends in the program:
- Federal
- Income (Select My Forms)
- 1099-INT, DIV, OID
- Did you earn any interest or dividend income from a bank, brokerage firm, or other financial institution?
- Dividend Income (Form 1099-DIV)
- Exempt Interest Dividends (Form 1099-DIV, Box 12)
Why Is Box 12 Reported If It's Tax-Exempt?
Even though exempt-interest dividends are generally not subject to federal income tax, the IRS still requires them to be reported. They may affect other tax calculations, reporting requirements, or state income tax treatment.
Box 13: Specified Private Activity Bond Interest
Amounts reported in Box 13 are generally related to interest from specified private activity bonds.
For many taxpayers, Box 13 will not require any additional action. However, if you are subject to the Alternative Minimum Tax (AMT), this amount may need to be included in your AMT calculation.
When Can Box 13 Be Ignored?
If you are not subject to AMT, you can generally disregard the amount reported in Box 13.
How Do I Enter Box 13 for AMT Purposes?
If you need to report the amount for AMT purposes, go to:
- Federal
- Other Taxes
- Alternative Minimum Tax (AMT)
- Interest From Specified Private Activity Bonds Exempt From Regular Tax
Enter the amount from Box 13 in this section.
Quick Reference
| 1099-DIV Box | Description | Where to Enter |
|---|---|---|
| Box 12 | Exempt-interest dividends | Federal > Income > 1099-INT, DIV, OID > Dividend Income (Form 1099-DIV) |
| Box 13 | Specified private activity bond interest | Federal > Other Taxes > Alternative Minimum Tax (AMT), if applicable |