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This error is related to the Minnesota Working Family Credit and the Child Tax Credit. You should go back to the section in TurboTax and go through it to double check the entries.  Make any changes if needed, but if everything is correct, run through the state filing steps and resubmit.  Please post again if it is rejected again.    

This seemed like a good idea but no workie... I already have my 1099-INT with just the Box 1 (Taxable Interest) and Box 3 (U.S. Treasury) amounts ONLY (as you suggested). My muni bond interest is over on 1099-Div in box 12 so it is already separate. To test, I first whacked the muni-bond dividends from that 1099-Div and as expected, the correct T-bill interest showed up in Schedule 1 line 1 column B as expected and correct. I then created a new 1099-Div with just the munibond dividends and we went right back to getting a net amount munibonds - Tbills in column A (since munis amount slightly greater than Tbills). I'm also a little squeamish on tricking the code as my resident MN return handles munibonds and Tbill correctly. I don't want to trick Iowa and end up with a MN problem. I'm not sure if your comments on state interview. Why don't we just fix the code in the Iowa return to eliminate the net math calculations it is apparently doing and just put the numbers in the correct columns they way Iowa devised the form? The MN return seems to handle the same basic calcs (add back munibonds minus US Govt interest) I'm (reluctantly) using Premium on-line as was forced over with a windows 10 system.

The TurboTax online editions are only for tax year 2025 and cannot be changed.   To complete and file a 2023 tax return using TurboTax you would need to purchase, download and install on a personal computer one of the 2023 desktop editions from this website - https://turbotax.intuit.com/personal-taxes/past-years-products/   A 2023 tax return can only be printed and mailed, it cannot be e-filed using TurboTax.

Taxable income left blank is common. Your Code 3 is disability so part of your income will be treated similar to wages because you have employer paid disability benefits. This makes you eligible for earned income credit and child tax credit. The part after your birthday is pension. Since you have a form that covers 2 different things, here are the options: If you have children - age 17 and under on your tax return and qualify for those credits, it would be worth splitting your form and entering the disability as one form and the pension as another form, each having the relevant parts and portion of income.* If you don't have kids- just enter the one form as-is. Since you have reached the minimum retirement age, your disability is converted to pension/ annuity. You have box 9 - this will determine the taxable portion. You and the program will use the Simplified Method Worksheet. The questions are asked after you enter the 1099-R.  Let me explain box 5 and box 9. Box 5 is health insurance premiums you paid with after tax dollars plus your nontaxable portion of the benefit. (If you know your health premiums, you can determine the nontaxable amount for this year on your own - no need). Box 9 is how much you paid in over the years working. The program then uses a factor based on your age to determine the % of box 9 that is non-taxable.  Be sure you answer all the questions after you enter the 1099-R to get the correct taxable amount. Be sure to mark that you reached minimum retirement age!   Next, look at your tax return.  Income reporting: If you enter the disability separately, it will go on 1040 line 1 wages. If you let it all be pension, 1040 box 5a is the total distribution, box 5b is the taxable amount. *If you do have children and need help with breaking things up, reply back. It isn't common but I thought it was worth mentioning.

I'm going to try again for a corrected W2 from my HR dept.  I don't think they appreciated the scope of this issue.   But for proof I do have my 2025 end-of-year paystub that breaks out the Direct Gratuities portion of my income onto a separate line.   Thank you for all the information and advice. 

Thank you so much!  I found that section VI that you mentioned on Info Wks instead of 1040/1040SR Wks.  I have no idea how that box got checked.  Someone above had said to go through the interview and I'd be able to pick something about itemizing or not.  But I tried that, and it did not ever present such a question. I had tried deleting the worksheet that you mentioned with no good result, but not the Info Wks.   The "bad box" that was checked for me says "Check this box to take the standard deduction even if less than itemized deductions".  I don't see any box that says what you wrote about limited and can be claimed as a dependent.  NO is definitely checked higher up on the worksheet for being a dependent of someone else.   As I mentioned in my first post, I did delete the Standard Worksheet for dependents, but it always came back. And as I said before, I had only tried deleting the worksheet you mentioned, not the one where the box was checked incorrectly.   I appreciate your advice!  

To enter, edit or delete estimated taxes paid (Federal, State, Local) - Click on Federal Taxes (Personal using Home and Business) Click on Deductions and Credits Click on I'll choose what I work on (if shown) Scroll down to Estimates and Other Taxes Paid On Estimates, click on the start or update button