Turbo Tax Error in 2024 NH DP-10 putting taxable interest in tax exempt field

[07rmtm07]

Turbo Tax Error in 2024 NH DP-10 putting taxable interest in tax exempt field.  Worked fine in previous years

Turbo Tax deluxe

[LenaH]

I did a mock return and the taxable interest entered shows on Line 1a of Form DP-10 and not on Line 4. However, when I selected My state doesn't tax all of this interest on the screen following the 1099-INT input on the federal screen, the interest is deducted as nontaxable on Line 4 of Form DP-10. 

Please review your 1099-INT entry to ensure that box is not checked if the interest is taxable to the state of New Hampshire.

[FlyFisher57]

Lena H,

Your reply is not quite right. The problem occurs when SOME of the income reported on the federal inputs for Interest (1099-INT) is NH tax exempt. Try your test case, for one Payer (e.g. ACME Brokerage) but enter, say, $30,000.00 in Interest Income in line 1 and enter $10,000.00 for line 3, which is for US Treasury obligations.  This means the TOTAL interest is $40,000 subject to federal income tax ($30,000 from line 1, and $10,000 from line 3), and of that, $10,000 is NH tax exempt. This is typical for a brokerage account.  I think you will find that when you go to the NH State Return, on the NH Nontaxable Income Summary page, you will find for ACME Brokerage there will be several entries, and only the one for $10,000 is correct. The erroneous rows cannot be deleted. This is WRONG, a bug in TurboTax.  

Is the only way out of this mess to make TWO entries in the federal inputs for the 1099-INT for all EXCEPT line 3, and a separate entry for line 3?

This needs to be addressed shortly ... only 4 weeks to go

[FlyFisher57]

Here is what you will get, first the TurboTax screen, followed by the resulting DP-10 form:

And this is the resulting tax form DP-10:

[FlyFisher57]

THIS IS THE BUG: In the entry or edit process for 1099-INT, in the screen titled "Do any of these uncommon situations apply?", the label for the second checkbox that reads "My state (ME, MD, MA, NH, NJ, or WV) doesn't tax all of this interest. Learn more"  is INCORRECT! 

That checkbox should read, "For entries in box 1, 9, or 10, EXCLUDING BOX 3, my state (ME, MD, MA, NH, NJ, or WV) doesn't tax all of this interest."

SOLUTION: For the case where there was taxable interest entered in box 1 and US Treasury Obligation interest in box 3 (Not taxed in NH), I found that if I unchecked the second checkbox, the NH DP-10 and the state screen titled "Nontaxable Income Summary" were correctly populated.

@07rmtm07 @LenaH