bob363308260
Returning Member

State tax filing

That did not begin to address the problem I am referencing. Most of my bond interest is tax exempt for both federal and Alabama because they are Alabama municipal bonds. However, some is taxable to Alabama (not federal) because the bonds are from other states. The 1099-INT shows all non-taxable which is fine for the 1040 but some needs to be classified as taxable for the Alabama Form 40. The TurboTax system does not appear to allow user input to override erroneous carry-forwards of information.

Similar problems arise when the federal requires a Form 8606 and the worksheet in-bedded in the software does not carry forward the correct data. The only way I found to overcome this issue was to prepare an pen-and-ink Alabama return. Nothing the system produced was close to accurate.