topic How do I let Turbo Tax know their downloaded program is not subtracting government interest from the total DIV reported? in Get your taxes done using TurboTax

How do I let Turbo Tax know their downloaded program is not subtracting government interest from the total DIV reported?

Anonymous — Mon, 23 Feb 2026 10:31:09 GMT

When I enter the Government interest from my total Dividends from a Vanguard Federal Cash Reserve MM, the amount is not subtracted from the total amount, This appears to be a bug. How do I notifify Turbo Tax so they can correct it?

Re: How do I let Turbo Tax know their downloaded program is not subtracting government interest from the total DIV reported?

SteamTrain — Sun, 22 Jan 2023 18:40:07 GMT

Not sure where you expect to see it removed.

It doesn't get removed from the Federal tax return.

It is supposed to be removed from any state income on your state tax return.

It worked fine on my desktop software...transferred to my NC state forms as a state income deduction.

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But you do have to ID those $$ correctly when you enter the 1099-DIV form.

You enter the 1099-DIV as-is on the main software form.

On a page after the main, you check a box to indicate that some of the $$$ are from US Government interest....and then a page or two later you enter the value of the $$$ that were form US govt bonds.

IF the 1099-DIV was imported, you have to edit the 1099-DIV to delineate the US Govt interest involved...that specific info does not come in with an imported form.

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The 1099-DIV , box 1a,b may be all, or part from US Govt bonds. So you have to determine that $$ amount yourself from whatever supplementary sheets the brokerage provide to you. Those who have multiple holdings of various stocks, bonds, Mutual funds, may find that a lot of the $$ in box 1a,b are from other things.

Re: How do I let Turbo Tax know their downloaded program is not subtracting government interest from the total DIV reported?

Anonymous — Sun, 22 Jan 2023 19:35:16 GMT

I'm sorry. You are right. It is the state tax that subtracts Gov. interest. Thanks for reminding me.