Arthur L. Rubin wrote:
- quote -

Quite often a client is required to file an Alabama return
(which asks the burning question onpage 2: "AGI on federal
return?") and not a federal. Therefore I figure the
answer is simply "zero".

Nary a complaint from them, either.

ChEAr$,
Harlan Lunsford
Sun, 16 Jan 2005

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rick++ wrote:

- quote -

If you are not required to file a Federal income tax return,
but are required to file a state return, and the state wants
a copy of the Federal return, what do you do? I know
California's rules for submitting a pro forma 1040 Schedule
A if you itemize for California purposes but not for Federal
purposes, but I'm not sure about the entire tax return.

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Perhaps.
If your state has an income tax, and the municipal bonds are
partially or totally out of state, your state will probably
want income tax. Many states use the AGI line on your
federal tax form as the starting point for determining
income.

A good muni fund manager will submit the dividend percentage
by state for this calculation along with the 1099.

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- quote -

But he cannot necessarily relax for state tax purposes!
Those muni bond funds are probably throwing off mostly state
taxable interest, unless he was clever enough to buy single
state funds from his own state.

--
Don EA in Upstate NY

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ri[at]xu.org (Xavier=A0Sledge) posted:

- quote -

No. No. And no.

The Alternative Minimum Tax is only a consideration for
singles with income above $40,250 (MFJ above $58,000).

Your brother can relax. _Completely relax, since his $9,000
total income is "mostly from municipal bond funds," and they
are usually not subject to Federal Income Tax, he will
certainly fall below the 2004 $7,950 threshhold which would
require him to even file a return.

But if he picks up a job or some other income, he should be
alerted that _taxable income totalling $8,000 will bring him
close to tax filing.

Bill

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My brother (age 50) inherited some money last year and
invested it, mostly in municipal bond mutual funds, but a
little bit in taxable bond and equity funds. His income will
consist entirely of about $9,000 per year in dividends from
those funds for the next two years while he attends
community college. Will he need to file quarterly returns?
Is he in any danger of encountering the Alternative Minimum
Tax?

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