Have investments in federal tax free municipal bonds, which are taxable in WI. I assumed TurboTax was handling this interest correctly, adding it to our WI taxable income, but we just got audited for 2015 and 2016 and had to pay back tax and penalties. In doing the 2019 taxes, it appears the tax free interest is not being added to the WI taxable income. The tax exempt interest on line 2a on the 1040 is not carrying forward to line 13 on WI Form 1. The correct amount of fed tax free interest is entered in the fed form Schedule B Line 8. How and where do I make sure it is included in our taxable WI income? Do I enter it on WI DOR form Schedule I, Adjustments to Convert 2019 Federal Adjusted Income and Itemized Deductions to the Amounts Allowable for Wisconsin? Or do I file without verifying it and plead for forgiveness if audited.
