topic Turbo Tax and Muni Bond Interest in State tax filing

Turbo Tax and Muni Bond Interest

rducotey — Mon, 23 Feb 2026 10:02:56 GMT

Turbo Tax is deducting my entire Vanguard Muni Bond Fund dividend on my NM state return even though I told it that only a small part of the total dividend was from NM bonds. I entered the NM portion and then entered the rest as multiple states bonds but the total amount was deducted from my NM taxes due on PIT-ADJ. This did not happen last year as TT only deducted NM muni amount on my state return. This is preventing me from submitting my 2022 returns. Please help solve this problem. Thank you.

Re: Turbo Tax and Muni Bond Interest

SteamTrain — Fri, 27 Jan 2023 11:39:14 GMT

@rducotey

Please call Customer Support and get this reported there for correction and they will have an error ticket submitted to get the software folks involved (Once they check it out closely)

Almost all-to-none of us helpers in the Forum....We do NOT have NM software to test out ourselves to report....

What is the TurboTax phone number? (intuit.com)

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The only other thing I might recommend trying...is to delete that 1099-DIV form entirely, and try entering it manually again.

Re: Turbo Tax and Muni Bond Interest

rducotey — Fri, 27 Jan 2023 13:29:59 GMT

There is a BUG. To test my thought, I put all the muni interest in ONE state (not NM) and my NM tax came out correct!!!! I only have a few bucks of NM muni interest so I guess I will just submit my state tax this way.

Re: Turbo Tax and Muni Bond Interest

rducotey — Fri, 27 Jan 2023 22:26:19 GMT

Looks like Turbo Tax fixed the bug because my NM return is coming out correct now for my Muni dividends. They are now only using my NM share and not the total amount as NM deduction.

Re: Turbo Tax and Muni Bond Interest

SteamTrain — Fri, 27 Jan 2023 23:24:31 GMT

Wonder if NM didn't get updated until Thursday night.

I always try to tell people to check for correction of their software bugs only on Fridays....because the software updates don't always get done on Wed night....and since each state has to be dealt with separately, some may get delayed an extra day.