TurboTax is not recognizing Schwab's reporting of interest on Zero Coupon T-Bills in a way that will generate a subtraction of the interest from Federal Income to determine state of CA interest. If Schwab is reporting the transaction as required by the IRA, TurboTax's program should be able to pick this up. It is not as if this is an esoteric transaction.
From reading postings on the Community, this problem is not isolated to Schwab accounts or the state of CA. That is the same problem exist with other brokerage firms' Form 1099 and other states. Fifty million Frenchmen can't be wrong. TurboTax should correct the program so that the returns do not have items that unnecessarily stick out and could cause a problem.
