Out-of-state income on muni bonds
We moved from Florida to California two years ago. We own municipal bonds from Florida, New Jersey, New York and Pennsylvania. I am told we now have to declare $20,000 as income as non-California munis are not tax deductible. We are in our 80s and this will be devastating. Can this be true?
Although we cannot offer tax advice, it is very clear that your out-of- state income is subject to California state taxation.
We are surprised that your broker did not notify you of this fact and convert your bonds to those issued by California entities in the past two years.
If you contact us, one of our bond specialists would be pleased to discuss your options for eliminating this tax in the future.