Form 140 line 15: Enter the amount of interest income from non-Arizona municipal bonds that you did not include as income on your federal return. You may exclude any expenses incurred to purchase or carry the obligation. Reduce the interest income by the amount of those expenses that you could not deduct on your federal return.
To adjust your entries:
- Open your return
- Select State from the Left menu.
- Select continue next to AZ return.
- Continue until you get to the screen Arizona Municipal Interest.
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