topic NC: "Interest income from obligations of states other than North Carolina" not being carried over from Federal return in State tax filing

NC: "Interest income from obligations of states other than North Carolina" not being carried over from Federal return

rjgabor1 — Sat, 01 Mar 2025 15:02:35 GMT

I have Exempt-interest dividends reported on 1099-DIV and have broken it out into the amount associated with NC and the amount associated with "More than One State". In the past, the "More than One State" amount would make its way to my NC return as additional income. But this year, it doesn't, and I had to enter it manually on D-400 Schedule S worksheet, Line 1. I tried deleting the 1099-DIV and re-typing it in manually, etc.. Has anybody else noticed this?

Re: NC: "Interest income from obligations of states other than North Carolina" not being carried ...

KeshaH — Sat, 01 Mar 2025 15:42:30 GMT

I've not been able to recreate this issue. Can you let me know what version of TurboTax your using and which operating system?

Re: NC: "Interest income from obligations of states other than North Carolina" not being carried over from Federal return

SteamTrain — Sat, 01 Mar 2025 15:43:33 GMT

@rjgabor1

Entering it manually on the NC tax forms may end up disallowing it to be efiled.

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Some folks noticed a strange way to fix it (though I didn't encounter the problem myself)

For the 1099-DIV (or 1099-INT),

1) they edited that form, and on the page that asks which state the Tax-Exempt $$ came from. the first selected the top box bullet, and then scrolled to the bottom of the list of states and selected "Multiple States" for all of it, then continued thru the pages that followed until they were back at the menu.

2) Then, the edited the 1099-DIV again, and this time, they selected the second bullet point, and did the proper break out of $$ for NC, any US Territories...and the remainder lumped as "Multiple States"....as one normally does.

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Working thru step #1 seemed to reset the issue, so that #2 worked as expected.

Re: NC: "Interest income from obligations of states other than North Carolina" not being carried ...

SteamTrain — Sat, 01 Mar 2025 15:48:08 GMT

Though, it looks like as part of step #1, they deleted the NC and Multiple States amounts in the break-out boxes first...before re-setting the top "One" state selection to "Multiple States".

See:

Solved: Re: TurboTax bug? All municipal bond interest is treated as if from NC when about 99% is from other states.

Re: NC: "Interest income from obligations of states other than North Carolina" not being carried ...

rjgabor1 — Sat, 01 Mar 2025 17:17:40 GMT

Thank you for trying to recreate it. I'm on version 2024.r20.026 on Mac.

Re: NC: "Interest income from obligations of states other than North Carolina" not being carried ...

rjgabor1 — Sat, 01 Mar 2025 17:37:35 GMT

@SteamTrain , Thanks for your help. I tried every variation of deleting/changing order of things as outlined in your post and the one you referenced, and I can't get the number to carry over.

Re: NC: "Interest income from obligations of states other than North Carolina" not being carried ...

SteamTrain — Sat, 01 Mar 2025 17:42:26 GMT

I think someone else just deleted the entire State form set....and then restarted it ..and then the $$ transferred over OK.

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On Windows, while in the Federal section, we go up to the "Edit" pull down menu, and in that pulldown there is a selection to "Remove State Return".

Once deleted, you just go back to the state section and restart it.....and then the data may tranafer correctly.

Re: NC: "Interest income from obligations of states other than North Carolina" not being carried ...

rjgabor1 — Sat, 01 Mar 2025 17:50:43 GMT

@SteamTrain , THANK YOU!!! I started deleting individual state forms, and it seems that they regenerated themselves, and now the number transfers over correctly. I appreciate your diligence in helping me.

Bob