I know the federal gov't requires to pay them tax, but my state has always allowed me to subtract on Minn. return. My Vanguard forms show the percentage on each fund that holds U.S. treasury obligations ...it declares dividends, not interest. Somethings wrong..just get "review msg" even after deleting
The law regarding U.S. Treasury income has not changed. Federal interest is exempt from state taxation. To enter exempt-interest dividends in TurboTax
We're actually talking about box 1a on the 1099-DIV, not box 11. There is a follow-up page where you indicate what sub-part of box 1a $$ came from US Govt bonds, so that income won't be taxed by whatever state is involved.
This IS a software bug in the "Online" software only (not in Desktop).....and as yet, we have no indication out here or in the FAQs, that TTX is working on fixing this BUG.
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See actual test numbers and confirmation of the problem here....and please report the problem up-the-line as a real software bug that needs fixing: