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I bought a small short term in-state muncipal bond last year. It was practice with the entire muncipal bond process. The prospectus claimed the bond was AMT exempt.

The consolidated 1099 shows the purchase, the redemption and the interest paid. It does not appear to give any information regarding the AMT status of the interest.

Is the AMT status reported on the 1099?

Debra

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If it's subject to the AMT they have to tell you SOMEPLACE, usually in a letter. If the prospectus said that and there is no mention on the 1099 or other literature, ignore it as it would be so small as ignore anyway. ed
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Is the AMT status reported on the 1099?

It is, at least on the 1099-INT I just received. That form has two new boxes this year: Box 8, which shows tax-exempt interest, and Box 9, which shows how much of the Box 8 interest is subject to AMT.

Lorenzo
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The 1099 from Fidelity has a box 8 for tax-exempt interest, but no box 9.

Debra
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The 1099 from Fidelity has a box 8 for tax-exempt interest, but no box 9.

Very few reporting agencies use the official 1099 form. Most use a substitute 1099 where they only list information for the boxes that apply. So, if your Fidelity 1099 doesn't include box 9, you can safely assume that none of your tax-exempt interest was subject to AMT.

Ira
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Thank you,

Debra
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You have said the prospectus told you the bond was exempt from AMT.
Also, if the bond were subject to AMT, your confirmation slip from Fidelity would so state, in addition to the information being on the 1099.
So it would be pretty hard not to know.
Mutual funds are more difficult, but there is sheet or a folder with mutual fund 1099s that tell you the % of your interest that is "private activity bonds"--subject to AMT.

Best wishes, Chris
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You have said the prospectus told you the bond was exempt from AMT.
Also, if the bond were subject to AMT, your confirmation slip from Fidelity would so state, in addition to the information being on the 1099.
So it would be pretty hard not to know.
Mutual funds are more difficult, but there is sheet or a folder with mutual fund 1099s that tell you the % of your interest that is "private activity bonds"--subject to AMT.


This year it will be much easier as tax-exempt interest and AMT interest must be reported on the 1099. The downside is that many 1099s will be delayed or corrected. Several large brokerages have already received extensions from the IRS allowing them to issue first 1099s in early March. (I don't recall this EVER happening before.)

Ira
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