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wfc23
Returning Member

Municipal bond interest is taxable in my state. Why won't TurboTax transfer my municipal bond interest to my state return?

 
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7 Replies
MayaD
Employee Tax Expert

Municipal bond interest is taxable in my state. Why won't TurboTax transfer my municipal bond interest to my state return?

We'd love to help you complete your tax return, but need more information. Can you please clarify your question? which state return are you preparing?

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wfc23
Returning Member

Municipal bond interest is taxable in my state. Why won't TurboTax transfer my municipal bond interest to my state return?

Oklahoma

Hal_Al
Level 15

Municipal bond interest is taxable in my state. Why won't TurboTax transfer my municipal bond interest to my state return?

After entering your 1099-INT (or 1099-DIV), when TurboTax (TT) sees that you have tax exempt interest, 

you will be asked which state. You most likely selected OK, telling TT  that the interest was not taxable by OK,

 

Instead, check the box "I earned tax exempt dividends in more than one state". In the drop down menu,  select "More than one state"* (at the bottom of the scroll down list) and enter the same dollar amount.

 

*Most mutual funds will provide a breakdown. Some of the interest may not be taxable by OK. But you usually have to ask for it, or find it on their web site.  It's usually so little, that many people don't bother. 

wfc23
Returning Member

Municipal bond interest is taxable in my state. Why won't TurboTax transfer my municipal bond interest to my state return?

The muni bond interest is from 2 different sources. I entered the amounts as you instructed and TurboTax only transferred the amount from one of the sources to my state return. 
Why won't both amounts transfer?

Hal_Al
Level 15

Municipal bond interest is taxable in my state. Why won't TurboTax transfer my municipal bond interest to my state return?

Why won't both amounts transfer?

 

You have to do this for both sources:

After entering your 1099-INT (or 1099-DIV), when TurboTax (TT) sees that you have tax exempt interest, 

you will be asked which state.

 

 

wfc23
Returning Member

Municipal bond interest is taxable in my state. Why won't TurboTax transfer my municipal bond interest to my state return?

I have done it for both sources and only one source has transferrd to the state return

Municipal bond interest is taxable in my state. Why won't TurboTax transfer my municipal bond interest to my state return?

I ran into this issue as well where most of a muni bond mutual fund was not tax exempt in my state (I moved so this was a part year state calculation).  Despite entering the mix, the correct number did not find its way to the right NC form.  TT help suggested a "fake" of this (via an expense adjustment) but that ended up with a double entry on one of the forms.   I ended up overriding the program on the form where the number was needed, and as far as I can tell the return now looks correct.  But the software should be corrected to handle this.

In my case, the amount need to get to NC D400 schedule PN and NCDOR Schedule S and finally to NC DOR D400.

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