Thank you Amy, I did figure it out tonight and you are right that it was due to AGI being higher on line 1 of MN form M1 due to reporting the bond interest. As a result, my MN standard deduction was reduced more, since my income exceeds a certain threshold. So I think TurboTax is doing it right... but it feels like MN is doing it wrong... If the bond interest isn't supposed to be taxed by the state, then my state taxes shouldn't go up due to reporting US bond interest 🙄
I wonder if I should have reduced my AGI by the bond interest amount and not do the subtraction on MN? Pretend the interest never happened for MN purposes...
