I don't think you understood the problem. Turbo Tax is NOT GIVING ME THE OPTION to change the exclusion of $1K for MA and $1K for NC (which I did enter correctly on the federal return). The federal return which contains the $1K exclusion is carrying over to BOTH states and there is no way for me to change that number. TT is entering $1K on Line 1 of MA Form 1, 1-NR/PY Schedule B Excluded Statement which is NOT CORRECT and there are no "adjustment" questions which will change this number.
TT will allow me to make adjustments to exclude more for each state or to add more income for each state, but the $1K from federal return carries over to BOTH state returns with NO CHOICE. If I did what you suggested, I would show for MA that I am excluding $1K but would then have to add back income because TT is allocating too much exclusion for each state. This is the only question I get for the MA return relative to adjustments: Do you have any additional interest or dividend income to report or any to exclude? The problem is the is NO OPTION to change what the federal return is carrying over for the exclusion. There was an additional question that allowed me to adjust the total federal dividends so they applied only to MA.
The only way I have found to correct this is to NOT ENTER any exclusion on the federal return, and then add the proper adjustment when asked for an exclusion for each state.
