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.
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.
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.
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.
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.