I never said that I bank account interest should be exempt. Whoever gave me an advice above guided me through the incorrect steps. Here is my situation. I file taxes with a state A as a resident and WI as non-resident. I included bank account interest in both federal and state A tax forms. However, TurboTax automatically and incorrectly carries bank account interest to WI state 1NPR form making me literally pay the bank account interest tax in both states, but this should not happen as I lived and earned this interest only in one state. TurboTax does not provide a way to edit taxable interest on 1NPR, so I just ended up filling out the paper forms and sending them to WI DOR as it was easier to do than to navigate TurboTax software.
