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Brian T1
Returning Member

MA Muni Fund exempt dividends not being properly flowed to MA state tax.

In the online 2024 Turbo Tax I have run into the same problem I ran into last year on my Massachusetts state tax.  I have a Fidelity MA state tax free Muni fund which indicates say $2000.00 on line 12 (exempt interest/dividends) on the 1099-Div.  In the supplemental information Fidelity (State/Local Tax-Exempt Income from Fidelity Funds) indicates that $1500 is State/Local Tax-Exempt Interest and $500.00 is State/Local Taxable Interest. 

As per the instructions, on the "Tell us more about your exempt interest dividends" window I entered that I earned exempt-interest dividends from more than one state.  I entered $1500 for Mass. and $500 for Multiple states.

When I look at the summary of my Mass tax return it states that I have $2000.00 of MA tax exempt-interest dividends when it should state that I have $1500 - i.e., I need to pay MA tax on the $500.00

How can I fix this?  I tried reentering the 1099-Div form information, but it didn't work.  Is this a TT bug?  Is there a workaround? If there is no easy way to do this, what is a simple way of fixing the state form?  Can I edit the state tax forms when using online TT?

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1 Reply
Brian T1
Returning Member

MA Muni Fund exempt dividends not being properly flowed to MA state tax.

I found a way to fix it!  Instead of just deleting and reentering specific items on the 1099-Div form, I deleted the entire form and entered it in manually instead of importing a pdf which I did originally.  When I saved the results, I found that they were transferred to my state tax form correctly now (i.e., $1500 exempt dividends instead of $2000).  I have no idea why this worked since the information I entered manually was exactly what showed up when I imported the 1099-Div pdf.

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