How do you enter tax-exempt bond premium (box 13) deductions when the right figure is different than the split of in-state and out-of-state bond interest?

[dmh9-comcast-net]

70% of my tax exempt bond interest is from in-state bonds but 95% of my bond premium deduction are from those in-state bonds. Turbox allocates only 70% in my state return with no option to adjust.

[SteamTrain]

@dmh9-comcast-net 

In this situation, I would create two separate 1099-INT forms, as-if coming from the same brokerage.

One with all the other boxes, and the box 8 & 13 $$$ for all other states.

Then a second one with just your in-state $$ for box 8 & 13.

That should do it.

[SteamTrain]

You might also need to create separate 1099-INT forms in any year that you buy a bond with accrued interest that you have to pay to the seller.   This is especially critical if your 1099-INT contains $$ in any two or more boxes 1,3, and 8......let alone detailing whether the box 8 $$ are from your state, or any other state. 

(But you only declare that you paid the accrued interest to the seller, if you get an interest payment in the same year you bought the bond....otherwise you have to wait to declare it on the next year's taxes)

The primary reason for doing this, is that entering the accrued interest you paid on any bond type, into the software, ends up being divided proportionally between the box 1, 3, and 8 $$.  Thus, I sometimes have to create up-to three separate 1099-INT forms in some years, depending on what I bought on the secondary market.

Someday, TTX may give us 3 selections in the software, to indicate whether the accrued interest we paid to the seller came from Corporate, or US Govt, or Muni bonds so that we don't have to break up a single brokerage 1099-INT form, into separate 1099-INT forms in that situation, but so far, they have not.

[dmh9-comcast-net]

Thank you. I'm a recent convert from Block's software after they made some components absurdly difficult. They actually do this one better, assuming the user knows what they're doing. They make the data point for the bond premium unrelated to the instate/outofstate breakdown so you can use a single form and just put the correct number in, rather than the figure from the 1099. Granted, most people probably just use the 1099, box 13 and so cheat a bit! "The software made me do it" defense.