My son lives in California and had $9,000 in California Municipal bonds. He did not claim them as tax free on his CA tax return, so paid $600 too much tax the last two years. Obviously he has to file an amended CA tax return. Does he also have to file an amended Federal tax return? It won't affect his Federal tax.
Paid state income tax on tax free bonds! What to do?
Apr 08, 2015
2 Replies
If the tax doesn't change, I don't see why the feds would care. But be sure it really won't affect his tax. Does he itemize deductions? Did he deduct his state income taxes?
Hadn't thought about that. He got the standard FED deduction for 2014, so it won't affect anything, but it well might have.
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