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Level 2

Handling Tax Exempt Income (1040 2a) on With Part-Year Returns For Multiple States

Hi.  I moved to Maryland  on November 1, 2020.  TurboTax has me completing two Part-Year returns, and has provided places in each State interview to report non-resident income which it then subtracts from the Maryland Adjusted Gross Income as I expect.

However, TurboTax did not provide the same option for non-resident Tax Exempt Income -- it just copied the entire amount from Form 1040 line 2a into Maryland Form 502 line 2, even though only a small fraction of that income (17%) was actually earned while in Maryland. 

This is a problem since my previous state did not tax any Tax Exempt Income whereas Maryland only excludes Maryland Bonds from taxation.  

Am I correct that I should only be reporting the Tax Exempt Income earned while a resident of Maryland, and if so, is there anyway to have TurboTax handle this correctly (other than my directly overriding form 502 line 2).

Thanks in advance.