NC Tax Exempt Income From US Gov Securities

[Joyski]

Turbo tax is not asking about Tax Exempt income from US Gov. Securities that would go under Part B Deductions From Federal Adjusted Gross Income  D-400 Sch. S Line19.

Where would I enter this Amount?  

[SteamTrain]

They are transferred to NC, based upon your entries in the Federal section.

Those are entered in two places. 

1)  Box 3 on a 1099-INT form....but those would go in the properly right away, as long as they were on a 1099-INT in the proper box.

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2)  The ones that can cause some issues, are those that are issued as part of Mutual Fund distributions.  Those are a part of your entries on a 1099-DIV form.  US Govt interest from Mutual Funds are entered in box 1a on the 1099-DIV, however, box 1a also includes stock dividends, Corporate bond interest, and short-term gain distributions from Mutual funds.  SO you have to use other informational forms from the Mutual funds (usually created at year end) to calculate what sub-part of the box 1a $$ came from US Govt Bonds.  IF you can't calculate the $$amount, or don't want to calculate it, then you don't claim them at all and move on.

3)  IF you do calculate what sub-part of box 1a came from US Govt bonds, you edit that 1099-DIV form, and enter the data exactly as shown on the real 1099-DIV.....BUT...a) click the box to show all the other boxes on the form (if not already showing), and go to the bottom and Continue to the next page.  b) Check the box that indicates that "A portion of these are US Govt Interest".....and continue thru the next page(s)....on one of them c) you will be asked to enter the US Govt Interest from your calculations .... and move on form there to complete any other questions asked...then the US govt Interest should be noted as a subtraction on the NC forms.

[Joyski]

First the US Gov. income I am trying to enter is included in my mutual fund Ordinary Dividends.  The year end supplemental statement breaks down the dividends by Fund.  It also give a reference page that tells you what percent of that funds dividends come from US Gov. Securities.  I have the figure I need and in past years never had a problem plugging that figure into my NC Tax Return.

This year I got to the point in Turbo Tax where it asks for Other Deductions from Federal Adjusted Gross, however, there is no question where I can enter the US Govt income. 

[SteamTrain · Accepted solution]

@Joyski 

You DO NOT enter them in the NC interview.

You enter them as a part of your 1099-DIV entry in the FEDERAL section......then the numbers transfer to the NC software automatically from there.

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First...you enter your 1099-DIV data

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Then you check a box............

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Then you enter the $$ amount that was from US Govt Bonds  

[Joyski]

You are absolutely right.  I guess I was on such a roll this year I went completely by that question on the Fed. Return.  Good thing I mail in my state return it hasn't gone out yet.

Thanks Steam Train