MD Form 502 - exempt interest from other states not added to income

[stevepff]

On Maryland Form 502 Line 2 is supposed to be additional income from exempt-interest dividends from states other than Maryland.

I am doing the input correctly - on the Federal input for Form 1099-DIV, I enter the exempt-interest total, then later when asked "tell us more about your exempt-interest dividends" I break out the amounts earned from Maryland and Multiple States. The Multiple States amount is supposed to flow through to Line 2 on the MD 502 Form but nothing is showing there.

This must be a system glitch.

I am handling this the same as prior years but not getting the expected result.

Any help?

Thanks

[DMarkM1 · Accepted solution]

You are correct the non-MD exempt interest dividends from 1099-DIV box 12 should flow to MD form 502 line 2.  In my online and desktop products this appears to happen when I make the allocations for the box 12 amount.  In online versions try signing out of your TurboTax account and clearing cache and cookies.  Here is a link to assist if needed.  

Then go back through the 1099-DIV entries and delete/re-enter the amounts including the box 12 allocations.  While on the page to make the box 12 allocation you can check that the MD tax changes when you change the allocation amounts between MD and the other states and click continue.  Look at the "state numbers" (MD) at the top of your TurboTax page.

Also, in online versions after making the entries, you can check the MD tax summary and you should see an addition to income for the non-MD portion (see steps below).

1. Select "Tax Tools" in the left hand menu
2. Select "Tools"
3. Select "View Tax Summary"
4. Select "Preview My 1040" in the left hand menu

5. Select "MD Tax Summary"

[Ridge3]

Having same issue with MD line 2 NOT bringing in number inputted from Federal taxes ...... using Desktop version.... will try deleting funds and re-inputting but it's very frustrating!  

[AmyC]

Verify your federal entries are marked. Once done, the interest and dividends in boxes 3 and 12, respectively, will automatically pull over to be tax free. Next, a page pops up asking about capital gains from US Obligations. You may have income in other boxes and needed to make an adjustment.

Which forms and  which boxes are you struggling to get right? Is your program up to date?

Federal make adjustments:

State pulls things over

State asks for capital gains adjustment

@Ridge3 

[Ridge3]

Yes, Turbotax is Up to Date.

Not dealing with the Captial Gains - it's the 'Interest/Dividends from US Obligations'... we've entered the correct numbers for 2 funds in the Federal Tax section, however it is NOT pulling that amount ~$140 over to the State Form 502SR Line 2 as it should...the State form is just 'blank'.... 😕

[BrittanyS]

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)