You are answering a question about South Carolina using a Maryland return form. The issue still exists that interest from US Obligations entered into the Federal income worksheet does not automatically populate Line 1-m on Form SC1040. If one is not careful when reviewing their return, this deduction from Federal Taxible Income may be missed and result in less of a refund, or an increase in Taxes Due to the State of South Carolina. There is no promt or question in the South Carolina program addressing this tax-exemp deduction.
