AH - I see the issue. In the past I think the interview item was framed differently!
Currently it asks "Which state are you <shows total amount> of exempt interest-dividends from?
I had answered Kentucky. That is wrong because not ALL of the total is from Kentucky! I guess I interpreted it initially to to the effect of "what state doesn't tax the total".
The CORRECT selection in my case should have been "More than one state" I think this would have created the KY 740 schedule M.
