topic Im trying to complete the state return portion and it keeps saying “Sch B Part 2 Code is not a valid subtraction modification code” in Get your taxes done using TurboTax

Im trying to complete the state return portion and it keeps saying “Sch B Part 2 Code is not a valid subtraction modification code”

lfuller321 — Tue, 24 Feb 2026 06:17:36 GMT

What do I enter to complete this portion?

Re: Im trying to complete the state return portion and it keeps saying “Sch B Part 2 Code is not ...

PattiF — Sun, 02 Apr 2023 01:49:02 GMT

To clarify your question, which state is this?

Re: Im trying to complete the state return portion and it keeps saying “Sch B Part 2 Code is not ...

lfuller321 — Sun, 02 Apr 2023 12:48:05 GMT

New York

Re: Im trying to complete the state return portion and it keeps saying “Sch B Part 2 Code is not ...

MaryK4 — Fri, 07 Apr 2023 00:12:11 GMT

Schedule B, part 2 is the Dividends Section. Go back to the 1099-B or 1099-DIV section of the federal return and check the entries. There should be a screen that asks about the state dividend treatment. @lfuller321

Re: Im trying to complete the state return portion and it keeps saying “Sch B Part 2 Code is not ...

lfuller321 — Fri, 07 Apr 2023 11:49:54 GMT

Thank you so much! I appreciate your response. Very helpful

Re: Im trying to complete the state return portion and it keeps saying “Sch B Part 2 Code is not ...

Alapage66 — Sun, 17 Mar 2024 01:57:27 GMT

Having the same issue but cant find where to go after wages an income

Re: Im trying to complete the state return portion and it keeps saying “Sch B Part 2 Code is not ...

Alapage66 — Sun, 17 Mar 2024 01:59:14 GMT

Having the same issue but cant find where to go after wages an income, can’t find the 1099 section

Re: Im trying to complete the state return portion and it keeps saying “Sch B Part 2 Code is not ...

LeticiaF1 — Sun, 17 Mar 2024 13:53:53 GMT

TurboTax transfers data from your federal return to your state return. If the info in your federal return is incomplete or incorrect, your state return won't be complete or correct either.

Before you begin troubleshooting your state return, go back through your federal return and make sure everything's correct. To go back to your 1099s or any other investment income you had, follow the steps below:

Sign in to your TurboTax account and open or continue your return.
Select Federal from the menu, then Wages & Income.
Locate the section titled Investments & Savings and select Show More, then select Start or Revisit next to Interest on 1099-INT or any form that you need to review.

Once you're done, select the State Taxes tab and review the state section. Pay close attention to the info, especially if you made changes to your federal return. There might be new sections that need to be completed.

@Alapage66