This is an FYI for other doing Kentucky State with exempt interest income, and hopefully could help fix the bug...
Using 2022 TurboTax Premier, I got the prompt on Federal interview to indicated expect interest income, per the old post here - https://ttlc.intuit.com/community/business-taxes/discussion/how-to-add-exempt-interest-on-kentucky-s...
No problem with that.
However, when I completed the Kentucky interview, Schedule M for Federal AGI Modifications had not been created. Thus the Sched M line 1 for "Enter Interest income from bonds issued by other states and their political subdivisions" was never populated and added back into my income for Kentucky.
If I had filed my KY State return without manually finding and completing Schedule M, I would have paid about $200 less than I actually owed, possibly triggering an audit!
Note that I have also created a return for my daughter who had income in a couple other states BEFORE I started my state interview... Could it be that the additional States being noted by TT messed up the program's Kentucky logic for my return?
