Hello,
When I enter $3937 in Box14 and designate it code A for "tax-exempt" interest on Form 1041 in Turbo Tax, it does not reflect in my taxable income, line 2b on 1040 (it does appear on 1040 line 2a). But it does make a difference in the amount I owe. In this case, it lessens the amount of my refund by close to $285. Why is this? It seems like only the taxable interest should matter? FYI, the $512 taxable interest I enter does show on line 2b the 1040. Got any ideas?
