Turbotax Maryland form line 2, "Tax-exempt interest on state and local obligations (bonds) other than Maryland"

[tgm1327]

I am attempting to use Turbotax Premiere to edit my Maryland state form to report "Tax-exempt interest on state and local obligations (bonds) other than Maryland" -- I know the amount I need to enter on this line, have figured all that out based on my 1099-Div -- but I CANNOT figure out in Turbotax how to get this entered correctly.  They sure do not make it easy!  Can anyone help?

[ThomasM125 · Accepted solution]

You need to make your entry in the federal section of TurboTax, when you enter your form 1099-INT. After your enter the form, you will be asked what state the tax-exempt interest belongs to, on the screen that says Tell us if any of these uncommon situations appply, to which you will check the box that says My state doesn't tax all of this interest. Then you will be given an opportunity to enter Maryland as the state the interest belongs to. If the interest belongs to several states, you can indicate that and list how much interest belongs to each state. Once you make those entries, they will flow down to the Tax-exempt interest on state and local obligations schedule on your Maryland return.

[tgm1327]

Thanks much!  So I reported the portion Maryland considers exempt -- alas, less than 2% of the federal exemption -- then just reported the remaining 98% under the "multiple states" option.  Worked like a charm on the state form, many thanks!