I have municipal bonds from both my state of residence and other states held in a brokerage account . The interest on the resident state bond is excluded in my state taxable income, but the interest from the other states is included as taxable income. Because 1099-INT Line 13 (Bond Premium on Tax-Exempt Bond) is imported from as a single number, and Turbotax interview doesn't ask for the allocation by state, Turbotax uses a shortcut to estimate the state allocation of Line 13 in the same proportion as 1099-INT Line 8 (Tax-Exempt Interest) that is reported by state in the interview. The interview should ask for the allocation of Line 13 by state. The amounts in Line 13 affect the taxable interest on the municipal bonds. I have to manually override the figure in the Forms view to get the correct reported interest on out-of-state bonds.
TURBOTAX, can you please fix this for 2024?
