What form do I use to report tax-free income fund?

That would be the 1040-TF

No, just kidding. No such thing.

TAX FREE income is TAX FREE!

If you had tax-free interest, it is reported on Form 1040 Line 8b. If yo have more than $1000 total interest, use Schedule B and carry it to Form 1040. The number is only used for a few things, like calculating how much taxable Social Security benefits you have.

If you are in a state with state taxes, the interest may or may not be tax-free to your state. Example: California bond interest is tax free if you live in CA, but taxable to you if you live in NY.

WealthBuilder
Enrolled Agent / Tax Specialist

No one expects you to fill out any form when it is tax free income. The institution will report to IRS.

Use Schedule B for interest. Tax free interest gets reported there and then excluded - it then shows on Form 1040 page 1 in a special box for info only. It is taxable on most state returns so you will add it back there.

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