subtraction for US govt interest on part year Michigan form

[anna_m_j]

I'm filling out a part year resident of Michigan tax form.   It tells me to not include the US government interest when I enter the dividends attributable to Michigan.  When I do that no value is placed in schedule 1, line 10 subtraction.  How/where do I enter the amount of US government interest from my dividends, so it will populate that line?   I'm also filling out a part year resident of Indiana form, and it allows me enter the US government interest so that form is working out correctly.

[MarilynG1]

You should get screens in the Michigan interview that display 'Federal Amount' and either 'Non-Michigan Amount' or 'Michigan Amount' where you can enter a different number for income items, like Dividends.

The amount would be shown on the Federal 1099-DIV Worksheet, Box 1a, U.S. Government Interest. You may want to review your 1099-Div entry in your Federal return to make sure the amount is entered there. 

Click this link for more info on Allocating Income as a Part-Year Resident. 

[mrclean]

This year (2023) I ran into the same problem on Michigan Schedule 1 Line 10. There was no prompt for allocating US Government interest to MI, just for allocating *all* interest. So it wasn't until I inspected the forms that I saw Line 10 had been left blank even though I have a substantial amount of income from US government sources. I had to override this cell which, of course, meant I couldn't file electronically. I think the interview needs to prompt for allocating interest from USG sources. 

[AmyC]

Interest on 1099-DIV in box 3 will go straight to line 10. Not knowing what you have, I don't know how to give additional help but we  are always glad to help. 

@mrclean 

[mrclean]

No, sadly, it does not. Interest on government obligations comes to the Interest Income Smart Worksheet on Schedule B from the various 1099-INT payer forms and should then be offered to the user for division between the states depending on when the interest was received. I do not see that this happens in the interview. The data source for Michigan Schedule 1 Line 10 says, 

Full-year residents:

From federal Schedule B, Interest and Dividend Income, Interest Income Smart Worksheet, Box 3, US Savings Bond/Treasury Obligations PLUS federal 1099-DIV Worksheet, Box 1a, U.S. Government Interest less related adjustments.

But for part-year residents, the line is left entirely blank. I went through this with TT support online and they advised me to override, which I did, but it prevented me from filing electronically. And, TT didn't realize it would prevent electronic filing until after I'd paid for the state e-file. (I've since received a refund, thanks.) I think this is almost certainly a bug, but I don't see where to report bugs.