topic Massachusetts Schedule B in State tax filing

Massachusetts Schedule B

40beach — Thu, 28 Mar 2024 18:41:35 GMT

Turbo Tax is not correctly transferring information from the 1040 to the subject. Here are the specifics.

Line 1 of MA Schedule B (Total Interest from 1040 lines 2a and 2b) includes the exempt interest dividends I have entered on the TurboTax dividend worksheet.

Line 2 correctly picks up the ordinary dividends from US Schedule B.

Line 3 ((other dividends not included above (enclose statement)) is a five figure number I can't figure out. The statement is no help, just repeats the number. This will be incorrectly added to MA taxable income. Note, last year I did my 2022 return on the on-line version of Turbo Tax and nothing was reported on this line.

Line 6 (other interest and dividends to be excluded....) (enclose statement). The statement shows that non-taxable MA interest that I entered on the Turbo Tax interest worksheet and US Government interest are excluded. Line 4 of the worksheet (any exempt portion of interest or dividends from a mutual fund included in MA Schedule B lines 1,2,or 3) is within a few dollars of the figures I entered on the forms asking "which states are your exempt interest dividends from" and is not worth worrying about.

However, line 3 is a huge problem. I look forward to hearing from you. Thank you.

Re: Massachusetts Schedule B

JulieS — Thu, 28 Mar 2024 19:00:56 GMT

Yes, there's a detail worksheet that calculates the figure for line 3. It's called Other Interest and Dividends Included Statement. See the image below.

If you are using TurboTax Desktop, you can view it in Forms mode and find out where this line 3 figure is coming from. To use Forms mode, select the Forms icon in the upper right corner, then highlight the form you want to see in the list on the left.

If you are using TurboTax Online, you will need to print or preview the return with all worksheets to find this form.

If you have more questions after viewing the worksheet, reply back and TurboTax can help you further.

Re: Massachusetts Schedule B

40beach — Sun, 31 Mar 2024 13:47:16 GMT

Thanks again for replying. I'm not sure if this is in response to yesterday's (March 30) post of mine or an elaboration of my original post on this subject. Also the Schedule B attached to Julie S's most recent post is the non-resident Schedule B. It does not help.

Please review my last two posts. TurboTax Deluxe is adding a couple of thousand dollars to my Massachusetts tax liability.

I need a solution to this short of paper-filing my state return without the income added on Schedule B.

Thanks in advance for your solving this problem.

Re: Massachusetts Schedule B

AnnetteB6 — Sun, 31 Mar 2024 14:21:55 GMT

If you would be willing to share a diagnostic copy of your tax return, it would be useful to take a closer look at the situation you described to see if there is a solution or a problem that needs to be reported and investigated further.

The diagnostic file will not contain personally identifiable information, only numbers related to your tax forms. If you would like to provide us with the diagnostic file, follow the instructions below and post the token number along with which version of TurboTax you are using and what states you are filing in addition to Massachusetts in a follow-up thread.

Since you are using a CD/downloaded version of TurboTax, use these steps:

Select Online at the top of the screen.
Select Send Tax File to Agent.
Click OK.
Post the token number here.

@40beach

Re: Massachusetts Schedule B

40beach — Sun, 31 Mar 2024 16:47:23 GMT

Got a response from AnnetteB6 asking that I send a diagnostic copy of the return which I have done. Her response asked me to "post the token number here". I have the token number 1222774 but am not sure it got posted.

Let me try and simply explain what's wrong.

Mass schedule B lines 1 and 2 picks up all interest and dividends, taxable and non-taxable, from the 1040 lines 2a,2b,and 3b.

Mass schedule B line 3 is for other interest and dividends not included above. The instructions for this line are to include several types of income which I do not have and to "include interest or dividends from a mutual fund if such distributions are not included in Schedule B line 1 or 2". (underline, italics, and bold face added)

My distributions from mutual funds are included in Schedule B lines 1 and 2. Thank you.

Re: Massachusetts Schedule B

AnnetteB6 — Sat, 06 Apr 2024 19:12:44 GMT

Thank you for providing your token number. After taking a closer look at the situation you described, I cannot explain where the number reported on line 3 of your MA Schedule B originates, but I can tell you how to remove it.

Go back to the Adjustments section of your MA return.
Continue through the screens until you see a page titled Interest and Dividends.
Select 'Yes' to the question about having any additional interest or dividend income to report or any to exclude.
On the next screen titled Additional Interest and Dividends you should see the amount that is reported on line 3 of your MA Schedule B. Since your Lines 1 and 2 already include mutual fund distributions, you can delete that entry here.
Then Continue through the rest of the return.

@40beach

Re: Massachusetts Schedule B

40beach — Sun, 07 Apr 2024 16:27:36 GMT

Many thanks to AnnetteB6 for finally coming up with a solution to a problem TurboTax created. In hindsight, I could have found the form in my many attempts to understand where this "ghost" five figure income addition to my state income originated, but honestly don't remember seeing this form. It is not a good testimony to the TurboTax program that such an addition can happen and no one knows how.

Thanks again AnnetteB6. Should I use TurboTax next year, hope you are still providing help.