There's an auto-entry on a line 2 of my State Interest Worksheet. Line 2 is for "interest on U.S. Savings Bonds and other federal obligations; Hawaii municipal bond interest; and Guam, Puerto Rico, U.S. Virgin Islands, and American Samoa bond interest". The amount entered is nowhere on my 1099-INT or 1099-DIV forms. Clicking on the shortcut to the "Data Source" for line 2 brings up:
"The amount from federal Schedule B, Interest and Dividend Income, Hawaii municipal bonds, plus Guam, Puerto Rico, U.S. Virgin Islands, and American Samoa bond interest, plus interest from U.S. Savings Bonds and other federal obligations."
Going to federal Schedule B, I am unable to find anything relevant to that topic. When I do a deep dive into the data for my 1099-INT and 1099-DIV, I can find interest payments for Hawaii, Guam, Puerto Rico, and the Virgin Islands bonds, BUT the total is only about 20% of the amount listed in the State Interest Worksheet form, line 2.
What am I missing? Where should I be looking?
You could have supplemental pages to your 1099-B that include the missing information. You may have funds invested in those areas.
Sounds like your state mixes together Treasuries and Munis on this line, for all things exempt from tax in your state, which should be a combination of the following:
US Gov Obligations (Federally Taxable, State Exempt):
1099-INT Line 3 less any premium (Line 12) or accrued adjustments (manual input)
1099-DIV Line 1 "US Government Obligations" amount (manual input) for MM Funds etc
1099-OID Box 8 less any premium
Federally Tax Exempt Interest (i.e. Municipals):
1099-INT Line 8 less any premium (Line 13) designated as Hawaii/US Possessions (% manual input)
1099-DIV Line 12 designated as Hawaii/US Possessions (% manual input)
Unfortunately with TT state there is not usually an easy way to 'double click' on the state exemptions and get the list of 1099 items making it up, you just have to go through your 1099s and keep track what your state subtractions and additions are going to be and go thru the 1099s if it doesn't tie out.
Thanks for your reply, AmyC.
Yes, there are 14 pages of supplemental information, which I had looked through. That's what I meant by, "When I do a deep dive into the data for my 1099-INT and 1099-DIV,..."
If this data point is auto-filled, shouldn't that number exist on another form in TurboTax? When I search through federal Schedule B, the stated Data Source, I find nothing related to it. Unfortunately, the QuickZoom link for this line is not active.
Is there some other way to track this down? Create a draft PDF Return including all calculation worksheets, then search the PDF for that State Interest Worksheet line 2 number?
Thanks for the detailed reply, baldietax.
I had previously identified in the Tax Summary and the Dividends and Interest Detail pages (that accompanied our 1099-DIV and 1099-INT forms) the tax exempt-interest dividends that were Non-taxable in our State. Guided by your reply, I found the amount of U.S. Government Interest Reported as Dividends. These were small amounts from seven different funds whose focus is not on U.S. Gov. bonds.
Although the U.S. Gov. Interest was not labeled "tax exempt", when added to the "tax exempt-interest dividends", the total equaled the amount on line 2 of our State Interest Worksheet.
ISSUE SOLVED!