When entering Original Issue Discount (OID) income I have two entries, one for my resident state and one for all other states in which I consolidate the income data. For the latter I choose “Multiple states” from the TurboTax pick list. However when TurboTax runs its final tax review it gives a “Check This Entry” message with a reference to the following:
Schedule B -- Form 1099-OID (CHARLES SCHWAB & CO., INC.): MX is not a valid state ID for CHARLES SCHWAB & CO., INC.
Tax Exempt Int State ID “MX”
The same message occurs with my TD Ameritrade 1099-OID multiple state data.
It then shows the Form 1099-OID Worksheet with the location that Turbotax has generated and inserted the MX code. TurboTax generates the code on its own, apparently as a result of me selecting “Multiple states” from their pick list when entering the OID income data, and then TurboTax gives a message that the code is not valid.
Has anyone else experienced this? Is this an error in TurboTax’s software? I’ve read/heard that XX is the proper code to use for Multiple states entry, so if that’s true why doesn’t TurboTax automatically insert the XX code instead of the MX code in the Form 1099-OID Worksheet when “Multiple states” is selected from the data entry pick list?
