Hi,
I'm writing because Turbotax is including including the full amount of Interest Income on US Govn't Bonds on my NY state return that I had calculated from my federal return and I see no way to adjust this. On my federal return, I had calculated US Govn't Interest from certain mutual funds that invested in treasuries on my 1099-DIV. As I read the NY instructions, NY only allows you to subtract US Govn't Interest when there is 50% or greater on the fund:
"Dividends you received from a regulated investment company (mutual fund) that invests in obligations of the U.S. government and meet the 50% asset requirement each quarter qualify for this subtraction. The portion of the qualifying dividends that may be subtracted is based upon the portion of the taxable income received by the mutual fund that is derived from federal obligations." See line 27 in the instructions here
Turbotax is including the full amount on my non-resident IT-203 Line 27 (this would be IT-201 Line 28 for a resident) and I cannot find an adjustment to take off the amounts from funds that had less than 50%. If I change the amounts on the federal return, it messes up my NJ state return. Any suggestions on what to do?
More information from NY: https://www.tax.ny.gov/pdf/memos/income/m95_4i.pdf
Note footnote on pages 2&3: https://personal1.vanguard.com/pdf/USGOIN_2023.pdf