Thanks for your reply. I should have clarified that the U.S. government interest was interest included within Box 1, Ordinary Dividends on Form 1099-DIV. The 2023 input screen for Form 1099-DIV has a follow-up question that asks if any of the following uncommon situations apply - the first of which is a portion of the dividends is U.S. government interest. I checked that box and then it asks for the amount of U.S. government interest.
On the state screen it acknowledges the correct amount of U.S. government interest that should be subtracted, but then after appearing to calculate, concludes that the subtraction amount is $0. I went back into my 2022 tax return as if I were going to amend it, and it appears that this worked in 2022, but not for 2023.
Perhaps it has nothing to do with it, but between acknowledging the amount of U.S. government interest and calculating the subtraction amount is $0, the software asks me for the portion of the U.S. tax exempt income subject to tax in Colorado (the Colorado add-back amount). I have a significant Colorado add-back. I could just reduce the add-back by the amount of U.S. government interest, but this isn't correct. U.S. government interest is a subtraction and the Colorado add-back is an addition and they are reported on different forms.
I'm not clear how to report a software correction to Turbotax. I'll probably just move on. Thanks again for our time.
