I have a situation where the tax-free interest in 1099-INT Box 8 is also exempt in my state (NJ). When entering the 1099-INT data, you arrive at a screen which asks "Which state is your $xx.xx of exempt interest from?" I select New Jersey, yet the interest is carried to the NJ form. It lists it on the NJ Int/Div Wks, which carries to NJ-1040 P2. What am I doing wrong???
