PA schedule B

[cyndilou22]

Can I view the detail of PA Schedule B before I pay for it?  I don't understand where they get the total from.  I'm not getting the same result as I do when I do it by hand. 

[ErnieS0]

No. You can only view a tax summary in TurboTax Online before paying for your return. You can pay and then preview your return and make changes before filing.

See How do I preview my TurboTax Online return before filing?

Did you have any U.S. government interest or tax-exempt interest dividend income? You can check your dividend entries.

1. Type dividends in Search (magnifying glass) in the top right
2. Click Jump to dividends
3. On “Your investments and savings” Edit your dividends

[cyndilou22]

Yes, I have a 1099 DIV with an amount in line 12 " Exempt Interest Dividends".  Some of it is taxable in PA, which seems like that is the amount that goes on line 3 of Schedule B (by reading the instructions). But then that amount is deducted from line 1. Then you have to add the total of line 12 back in. So that leaves you with the amount that is NOT taxable in PA actually included in the total of schedule B. And no matter which $ figure I use in line 3, I don't get the same answer that Turbo Tax gets. And there is really only 2 figures to choose from for line 3. The taxable part or the non taxable part. 

[DianeW777]

When the Exempt Interest Dividends are entered in your federal return and you use the screen 'Tell us more about your exempt-interest dividends' you select 'I earned exempt-interest dividends in more than one state'. Enter the amount that is earned through Pennsylvania (PA) sources. Then select 'Multiple States' for your second state and enter the remainder of the exempt-interest dividends.

Once the PA return is completed and you review your PA final summary of income you should see the correct total of taxable dividends less the PA exempt amount. In my test this proved to be true in TurboTax Online and TurboTax Desktop. See the image below for assistance.

[cyndilou22]

Yes, I listed the Pa amounts and the non Pa amounts in the Federal return.  Why Turbo Tax is not pulling those same figures into the state return is what I don't understand.  And if you do it by hand on the actual paper copy of schedule B of the PA return, and look at line 3, it says "PA exempt-interest dividend income". That, to me, by reading the instructions, means the taxable portion of the dividends. But then you have to subtract that number from line 1. Then, on line 7, add back to total of the dividends. So now you are taxing the non taxable part of the dividends. How does that make any sense? And why does Turbo tax not get the same amount? And I can't preview the details of Schedule B in Turbo tax until I pay for it, and then I'm not sure it will have the breakdown of the figures anyway.  If you are a tax expert, then clarify the instructions for line 3 of Schedule B and tell me which amount goes on it, the PA taxable amount or the non taxable amount.

[ErnieS0]

You will need TurboTax CD/Download to adjust your dividends.

How do I switch from TurboTax Online to TurboTax CD/Download?

1. Go to the screen "Dividend Income Summary" and select Edit next to your Pennsylvania exempt-interest dividends.
2. On "Adjust Federal Dividend Income," enter the PA amount as a positive number.
3. In the dropdown choose Other adjustment

[cyndilou22]

Why do I need to adjust the dividend?  I put the PA taxable amount in the Federal return. Isn't the state supposed to pull from the information from the federal return?  This should be a straight forward form.  I believe it even says in there that making an adjustment is not usual. And if I do it by hand, there would be no adjusting.  Do you see how confusing this is?

[ErnieS0]

If TurboTax Online is not adjusting your dividend, the workaround is to use CD/Download and make the adjustment.

[cyndilou22]

This screen was available in the on line version. Any adjustment was just increasing the amount that was being deducted and not taxed.  And then when I had clicked enough boxes and got the refund amount  to where I thought it should be,  when I went to go file it, the final number changed. I gave up. If it's wrong, Turbo Tax will have to pay the fines.