Allocate US Gov't bond interest subtraction - Minnesota Part Year resident

[Romper]

We moved from MN to AZ in Dec 2019. How do I allocate 11/12 of the subtraction for interest on US Bonds as part year residents of MN?
Ref: MN Schedule M1M, Net Interest or Mutual Fund Dividends Smart Worksheet. Seems to pick up the amount from the Fed 1099-DIV with no way to allocate the MN portion. The AZ Form 140PY has that option.

I can Override the entry on M1M but it seems there should be a way to do in in the Step By Step interview.

[AmyC]

In the step by step, go to the state. When you come to the Income Allocations page, enter it under Taxable Interest and Ordinary Dividend Income.

[Romper]

Thankyou for your reply Amy...

Can you clarify please...

Noting that interest from US government bonds is a Subtraction on a MN return, not income. The amount shows on MN form M1, Line 7 and MN Schedule M1M, Line 18. As a Part Year resident, I need to allocate 11/12 of the amount on my Federal return to MN.

Entering either a positive number or negative number under Taxable Interest and Ordinary Income as you suggest does not change the amount shown on M1, Line 7 or M1M, line 18. The amount on M1, Line7 and M1M Line 18 remain the amount reported in my Federal return.

Neither Line A, B or C of the Net Interest or Mutual Fund Dividend Smart Worksheet in Schedule M1M point to where it comes from in TurboTax. The only way I've found to change the amount is to override the number on line A of the Worksheet in Schedule M1M. Overriding the number does then show the correct amount on M1 and M1M. It just seems there must be a place within the Step By Step interview so I can add Supporting Details.

Am I missing something?

Jerry

[AmyC]

Yes! I am so sorry, I did not catch that you are saying M1M and not M1NR. You should not be using the M1M, that is for full year residents. Your program should be picking up part year resident and using the M1NR form for the partial amounts.

When I use the steps above, it goes to M1NR line 2 and the MN amount I entered is correct and not the federal amount.

You may need to delete your M1M or the whole state. Review your personal information and try again.

[Romper]

Thanks Amy..

It appears both Schedule M1M and Schedule M1NR must be filed with Form M1. 

A note at the bottom of Schedule M1M states "You must include this schedule with your Form M1".

A similar note at the bottom of M1NR states "You must file this schedule with Form M1".  

I do have Form M1NR and it shows the proper dates for our 11 months as MN residents.

Separately - Line 2 of Form M1NR is for INCOME, not SUBTRACTIONS. (As I noted earlier, "Interest from US Gov't bonds is a SUBTRACTION" on MN returns). That subtraction appears on Line 19 of Schedule M1NR, Line 19 of Schedule M1NR and Line 7 on M1.

Conclusion - The problem remains. Each Schedule and Form shows the 12 month Fed amount, no source, no way to allocate 11/12 to MN or add Supporting Details. The only option appears to require over riding the Fed 12 month amount.

Thanks again

Jerry

[AmyC]

Yes, the government bonds are a subtraction, but they go in Income Allocations page. There are 2 boxes, one for additions and one for subtractions. That amount goes in the subtractions to income box.

I am using desktop and the forms are working fine. Please try using the subtraction box under Income allocations and let me know which program you are using, online or desktop.

[Romper]

Interesting differences from what you are seeing vs mine.

I am also using TurboTax for 2019 taxes PREMIER desktop version with state from a CD with all the TurboTax updates. I completed the Fed return then downloaded the MN return. After completing the MN return, I purchased, downloaded and completed the AZ return.

Are you using the Premier version or Deluxe or?

From your past feedback, I assume you are also using the MN Part Year return.

My MN PART YEAR Step By Step - Income Allocations are completely different from yours.  I have two columns:

Federal and Minnesota.

Each column has four boxes.

- Taxable Interest and Ordinary Dividend Income

- Capital Gain or Loss

- IRA Distributions, Pensions, Annuities

- Other Income

All are related to income. Nothing relative to Subtractions.

On the AZ part year return, there is a specific question Interest on US Obligations.

It may be time to call TurboTax.

Thanks for your continued input.

Jerry

[Romper]

Hi Amy...

I connected live with a TurboTax support person. She could not find the Income Allocation screen you referred to nor any other way to make the MN allocation other than to Over Ride the amount in the worksheet on Schedule M1M.

I'd still be interested in any clarification you may have.

Jerry

[AmyC]

Things were not the same when I went back. I ended up asking for an internal investigation I could see where you had issues. I am so sorry.