Oregon Additions to Income - Incorrect reporting of Muni Bond Income from other states

[Tom48]

I have 3 1099-DIVs that show Exempt Interest Dividends. When I enter these in Step-by-Step I report which state the dividends are from, showing the amount from Oregon, and the remainder from "Multiple States".  TurboTax is not properly entering the "Multiple States" amount as an addition on OR-ASC . The TT 1099-DIV shows the correct State Allocation Table, but also, on the last line of Box 12, "State where the dividends were earned" it indicates "OR". That last entry seems to be overriding the State Allocation table. 

Am I entering the State Allocation incorrectly?

[baldietax · Accepted solution]

I assume you're looking in Forms mode on desktop at the 1099-DIV worksheet with those Box 12 lines... change the last entry from OR to XX and it should work, it will take the state allocation from the table.  It's a bit misleading, there is some sort of bug in the easy step entry I think if you change between the different options about one state or multiple states where it ends up putting your state there when it should just be XX.

[baldietax]

and just to add you're doing it right in terms of the state entry - you only need to list the %/$ from exempt state(s) and the rest as a total under Multiple States will be taxable.  But you may want to list the territories individually as well though, not sure OR tax code but often those are state exempt e.g. Puerto Rico for some funds can be a big %.

[Tom48]

Thanks! That works. I had tried just deleting the "OR" but it wouldn't let me do that.

It would be nice to get that bug fixed.