If an amount other than zero appears in Column 11 Specified Private Activity Bond Interest, you must report this on Form 1040 in the section labeled Income on the line labeled Tax-exempt interest. You can only use Form 1040A to report this income if you do not have any Specified Private Activity Bond Interest. Report this in the section labeled Income on the line labeled Tax-exempt interest.

Note: In many instances, interest from municipal bonds is tax-exempt in the state in which the bonds were issued, but not in other states. Interest from municipal bonds issued by Guam, Puerto Rico, and the Virgin Islands is also tax-exempt in most states. Therefore, in certain states, a portion of the distribution you received from your tax-exempt fund(s) in 2014 may be free from state income taxes. Contact your tax advisor for an explanation of the tax treatment of your distribution in your state.