I realize this thread is related to 2021 tax year, but the error still exists and was encountered again.
The additional issue I have is in the calculation of New Hampshire Dividends and Interest taxes, normally 5%, with NH Municipal Bonds exempt. If I enter any data from a 1099-OID box 10, Bond Premium, it is ported to NH as a taxable bond.
My work around which appears to clear both problems is:
- Enter any 1099-INT containing Box 8 tax exempt interest as a separate form.
- Enter any OID Bond Premium on the INT in box 13 as tax-exempt. That gets it into the 1040 data.
- For NH, under "uncommon situations", ticked "Our state doesn't tax all ..."
- Click through selecting "NH" in drop downs in two places.
- Enter any 1099-OID data EXCEPT Box 10 Bond Premium. It was entered on the 1099-INT.
- For NH, select State Exempt
- For NH, select Special Handling, and NH in the drop down.
I do not know how this might affect other state returns. The only side effect is that a number of useless entries are flagged while Smart Checking the NH return, but I clicked through ignoring them with no effect on the NH return.
