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New Member
posted Mar 1, 2021 5:36:35 PM

I have not filed yet but my Nebraska Schedule I line 2b is wrong. It should be zero. There is no interest income exempt from state tax. How can I fix it?

I already paid by credit card so it will not allow me to clear this and start over.  I need to fix it somehow in the system.

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1 Best answer
Expert Alumni
Mar 2, 2021 11:40:48 AM

Follow the flow:

  • Revisit the federal section where exempt interest was entered and de-select your state as having exempt interest income, if needed.
  • Interest flows from the federal return.
  • As you go through the state return, it asks about additional interest from government obligations.
  • Check your state entries and remove any entries added in the state section for exempt interest.

You could have NE exempt income from a mutual fund or stock investment. If you downloaded brokerage statements, you may want to verify in the breakdown pages that you have no NE exempt income. This is created when investments are made for your local and/ or state home .

2 Replies
Expert Alumni
Mar 2, 2021 11:40:48 AM

Follow the flow:

  • Revisit the federal section where exempt interest was entered and de-select your state as having exempt interest income, if needed.
  • Interest flows from the federal return.
  • As you go through the state return, it asks about additional interest from government obligations.
  • Check your state entries and remove any entries added in the state section for exempt interest.

You could have NE exempt income from a mutual fund or stock investment. If you downloaded brokerage statements, you may want to verify in the breakdown pages that you have no NE exempt income. This is created when investments are made for your local and/ or state home .

New Member
Mar 3, 2021 12:59:21 PM

Basically, I had to delete the 2 1099-INT imports that caused the issue and reimport them.  At that time, I picked "multiple states" since they were from multiple states, none of which were NE.  After that it was imported correctly from the federal return to my state return.

 

Thanks