State tax filing

The problem is on the MA return, TT excludes ALL of what carried over from the Federal return (20K in your example) PLUS what you showed in the "Other Interest and Dividends to Exclude" snapshot (1120) . There is no way to ALLOCATE the 20K carried over from the federal return. I would end up with $20K + $1120 excluded from the 1099-DIV income on the MA return.

 

 I went over this with a TT expert while he watched my screen and he agreed there is a problem with the TT software for the state of MA. The "workaround" is to enter during the Federal interview for "exlcuded income" only the amount that applies to MA, and generate a printable MA return from the print center which gets mailed, and then go back to the federal return and fix it for North Carolina (enter the full MA+ NC excluded amount), since NC handles allocating excluded income properly.

 

I am confused why your screen shows NEGATIVE 20,000  excluded. When I get to that screen it shows up as a positive number carried over from the federal return.