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Why Turbotax add my" MD municipal bond interest " back to my MD taxable? Those bond interest should be exempted from federal, state and local tax

Nuveen MD Municipal bond Fund interest should be tax free in the State of MD where they were issued. Turbotax should not add those amount to be taxes in my MD tax
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1 Reply
ThomasM125
Expert Alumni

Why Turbotax add my" MD municipal bond interest " back to my MD taxable? Those bond interest should be exempted from federal, state and local tax

When you report your bond interest, as listed in box 8 on your Form 1099-INT, you will see a screen that asks you if any of the interest is not taxable in your state. You need to indicate that your state does not tax all of the interest and enter Maryland as the state, on the screen that says Tell us if any of these uncommon situations apply:

 

On the screen that says Which state is your (amount of interest) of exempt interest from? you need to enter Maryland:

 

That should result in the Maryland bond interest not being taxable on your Maryland tax return.

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