State tax filing

Yes, you are correct. Only interest from other states besides North Carolina need to be added on Line 1 of Schedule S. When I tested this, the North Carolina Tax-Exempt Interest did not carry to Line 1.

Things to try to update your tax return:

• Close your program and the browser completely. Re-open using a Chrome incognito window.
• Delete and re-enter Form 1099-INT 
• Delete North Carolina and re-add it

Both options can be done from within the regular interview screens by clicking on the Trash Can Icon to delete the Form.

See North Carolina D-400 Instructions, Schedule S, Line 1 beginning on page 17.