TurboTax bug? All municipal bond interest is treated as if from NC when about 99% is from other states.

[Addison02]

Please see this "solved" question from a prior year:  https://ttlc.intuit.com/community/state-taxes/discussion/is-turbotax-incorrectly-reporting-tax-exemp... 

I'm having a similar problem. In the federal part of TurboTax I have municipal bond interest divided between NC and other states (using "XX" for them). However, the NC part of TurboTax treats all of this interest as from NC (i.e. not having NC tax any of it). TurboTax doesn't address this common situation on the step by step panels. There's a NC Schedule S worksheet where this data could be entered but the entry box is locked (i.e. un-editable). The result of this problem is that NC income tax liability is being underestimated. I did not experience this problem with TurboTax in 2022 and 2023.

Please correct this bug ASAP.

[Addison02 · Accepted solution]

With help from other community members and with a lot of time, I can report:  Problem resolved!

I navigated to the 1099-DIV panel and clicked edit. I did not change anything but that action allowed me to navigate to the panel where you enter the amounts for your state and for other states. I deleted both entries (i.e. the NC and Multiple States $s). I had to select the radio button designating all tax-exempt income being from one state and selected "Multiple States" as being that "one state". When I did that, the NC Refund amount at the top finally reset to represent all of these $s being from outside of NC (previously it treated those $s as all being from NC regardless of my actions). 

I navigated away from and then back to the same panel. This time I re-selected the radio button for dividends from more than one state and re-entered the same amounts that I had previously deleted. The NC refund amount updated again, this time FINALLY to the correct value. 

It shouldn't be this hard. If I had not be aware of what my NC refund should be, I might not have noticed TurboTax's error. TurboTax set me up to file an incorrect state tax return.