topic TurboTax 2024 still has programming error for NJ tax exempt interest in Retirement tax questions

TurboTax 2024 still has programming error for NJ tax exempt interest

icefalcon — Tue, 18 Feb 2025 13:45:45 GMT

In 2024, I had normal 1099-INT from a few outfits and cashed in some U.S. Savings bonds which had interest as well. In TurboTax the Federal 1040 is correct with all of the interest accounted for as taxable (line 2b).

On the NJ 1040, TurboTax made all of the interest as Tax Exempt (line 16b) not just the Saving Bond interest. I expected to see taxable (line 16a) and non-taxable interest (line 16b) entered.

I was on the phone for a few hours with TurbTax support with no help.

Essentially (by poking around) this issue was reported in this forum April 03, 2023 3:24p

This is sad....

Re: TurboTax 2024 still has programming error for NJ tax exempt interest

fanfare — Tue, 18 Feb 2025 16:53:14 GMT

In the case of NJ, you may have to calculate the Line 16b amount yourself and enter it either directly or via worksheet.

Re: TurboTax 2024 still has programming error for NJ tax exempt interest

icefalcon — Tue, 18 Feb 2025 15:39:05 GMT

Hi Fanfare,

Thanks for your reply.... After I posted my entry, I tried a few test runs.

Here's what I discovered...

There was another earlier post to place separate enteries for the Saving Bond interest (box 3) and normal interest (box 1) from the same bank.

=> I tried that with no success

Then I went back to each TurboTax entry that had normal box 1 interest. In these entries, when Turbotax asked the question.. "Do any of these uncommon situations apply?", I selected "None of these apply" instead of in NJ... So the only TurboTax Interest entry that I answered the I'm in NJ question was for the Savings Bond entry.

=> It appeared to give me the correct entries for NJ (lines 16a & 16b)

=> Possibly I mis-intrepreted the question and selected NJ for all of the interest entries???

Re: TurboTax 2024 still has programming error for NJ tax exempt interest

icefalcon — Tue, 18 Feb 2025 20:55:38 GMT

Hi Group,

After doing more Turbotax reading, I'm answering my own question to the group. Because I didn't read all the TurboTax infomation, I came to the wrong conclusion as my Subject line indicated. TurboTax is handling the NJ tax-exempt interest by allowing the user to tell TurboTax what's exempt or non-exempt.

My previous text on selecting the proper answer in the "Do any of these uncommon situations apply?" is the correct answer. In that same Pop-up... on the "My state" line there's a hyper-thread link to another TurboTax pop-up => "Learn more" On my screen it wasn't obvious it was a hyper-thread. When selected and then NJ selected, the text explains what the user needs to do for exempt or non-exempt. Essentially you are telling TurboTax how to handle the interest entries.

I'm sorry I jumped to an early conclusion, before doing my own research. This was my first post and probably my last.

Hopefully I clarified my original Post.