This is a bug in the desktop premier program. I have a CA Muni money market fund that is 85% CA Muni and 15% multi state and the Federal Schedule B is making all of the tax-exempt dividend income from this money market as CA. I split this income in the step by step between CA and multistate.
However, CA state return is not picking up the multi state 15% that is on the 1099 Div from the brokerage because the CA state program is only looking at the incorrect total tax-exempt income assigned to CA on
Federal Schedule B.
The problem is the Federal Schedule B is not breaking tax exempt income between your home state and other states.
