Maryland form 502SU line ab.

[ALCREEK]

Maryland form 502SU imports my federal 1099-INT amount as line 'ab', Inc from Govt obligations- this is wrong.

[BillM223]

How did you enter the 1099-INT? Auto-import or typed it in by hand?

I assume from your question that you did not mark the interest in the 1099-INT as "savings bonds and treasury int" (box 3).

[ALCREEK]

I entered by hand and checked the 'my form has info in more than box 1' because I also have interest in box 8. 

[ThomasM125]

When you indicate that the income is not taxable in the federal portion of TurboTax, in the Form 1099-INT entry screens, there is no option to indicate the reason the income is not taxable on your Maryland return. However, the main reason it would not be taxable is because it was interest on Federal Obligations, so TurboTax seems to default to that choice. I am wondering if the interest is reported in box 1 in error on the form 1099-INT. You mention there is an entry in box 8, but that wouldn't be taxable on the federal return so it wouldn't need to be entered on the state form 502SU. So the interest subtraction on your state return must be from an entry in box 1. You indicated that it wasn't taxable on your state return, which would normaly mean it was interest on US obligations, and in that case form 502SU is correct. 

[ALCREEK]

I will note that the reported amount in box 1 is all from bank CD's, not US Gov't issued obligations. Also, last year (2021 return) I had entries in the exact same boxes (box 1 and box 😎 with nothing carried over to Maryland form 502SU by TurboTax. It seems that Maryland will find that error.

[ALCREEK]

I found the source - an ambiguous check box on the 'uncommon situations' page. The 'our state does not tax all of this interest' check box should include the phrase 'in box 1'. Since I did have an entry in box 8, which is not taxable in Maryland, I had checked that box and chose Maryland. Problem now solved.