Luckily Morgan Stanley imported the information into the correct schedules and moved the interest from Schedule D to the Schedule B. I would have had no idea that needed to be done or even how to do it.
When talking to my tax advisor she said the the interest is not taxed in Illinois - which is the reason I buy Treasury securities. However, TurboTax does not reduce Illinois income by the amount moved from the Schedule D to interest on Schedule B.
Isn't the interest moved to B tax free in Illinois? If not, I have to change my investment plans since I had no I wasn't buying original issue bonds.
