Georgia Schedule 1 Additions to Income omitting 1099-DIV

[bbjaspan]

I have entered 3 1099-DIV forms containing Box 12 Exempt-interest dividends. For each form, I have entered the amount for my resident state (Georgia) and the amount for nonresident states. The Georgia Schedule 1 form, line 1, Interest on Non-Georgia Municipal and State Bonds should contain the total of the nonresident amounts for those 3 forms. But the amount shown includes only the amounts from 2 of the forms, excludes one of the forms. I have checked those 3 1099-DIV forms in TurboTax and all 3 contain the correct amounts. This appears to be a bug. What am I missing?

[SteamTrain · Accepted solution]

@bbjaspan 

The software has a sort-of bug for assigning those number from 1099-DIV forms  (not a problem for 1099-INT forms).

1)  Go back to the problem 1099-DIV form and Edit it.

2) when you get to the state breakdown page for the Tax Exempt $$, click on the "One State" bullet point

3) Set that One State bullet point to be "Multiple States"  (it likely showed GA before).

4)  Select the second bullet point, check those numbers (should still be there) and hit the "Continue" button.

(doesn't take effect until you hit "Continue")

The $$ added back to GA should be OK now.

____________________________

On a 1099-DIV, a "GA" in the first bullet seems to take priority, in spite of how you selected and did the state breakdown instead.

On a 1099-INT (for Tax-exempt $$ in box 8), the selection to use the state breakdown, takes precedence, no matter how the One State bullet point was initially set.

[bbjaspan]

Thank you! Yesterday I spent from 2:15pm to 6:20pm on the phone with multiple TurboTax support reps in several departments and none of them knew this. I had to refuse, HARD, paying $60 for Live Advice ("I don't need CPA advice, this is a TurboTax bug" was met by "I can't come to that conclusion until it is confirmed by a CPA.") I was also told, "If TurboTax shows no errors, your return is correct." Three times, during screen share, I deleted and reentered the problematic 1099-DIV, and the 3rd time, it worked! That is crazy and frustrating! 

The good thing was that I could see that I entered the 1099-DIV forms correctly and easily saw that one amount was being ignored. Today my challenge is to reconcile a $1000 discrepancy for Interest on U.S. obligations on my Georgia form. Unfortunately, I don't think there is anywhere in TurboTax that I can see what amounts it is including. When I ask for "Data source," some worksheets are mentioned but I cannot find those anywhere. I tried to address this with the last rep I spoke with, from the Resolutions Desk, but the call was disconnected and she did not call back. 

[SteamTrain · Accepted solution]

@bbjaspan 

US Govt obligations usually come form 1099-DIV and 1099-INT forms   (not sure about K-1 forms, I have no experience with those))

1)  For 1099-DIV forms, you have to calculate what sub-amount of the box 1a $$ came from US Govt obligations....then you enter that $$ amount on a follow-up page.  That amount you calculate can be a bit confusing to some folks, in that you have to get the information from the Supplemental data sheets the Brokerage provides...and also from extra information the bond funds provide about what % of their dividend distributions came form US Obligations.

2)  For 1099-INT forms, the $$ are in box 3 of the 1099-INT, for any Savings bonds you redeemed....or from actual individual Treasury Bonds or Notes you own.

_______________________

Now, if your GA US govt obligation number is too low, I would suspect the 1099-INT form(s).  In certain situations if you have data in the other boxes of the 1099-INT, the answer to it's follow-up questions for that 1099-INT can improperly affect the box 3 value that gets transferred to the state.  The solution is usually to remove the box 3 and box 12 values from that 1099-INT and create it's own 1099-INT (as-if from the same provider)....but being carful about the follow-up question about whether any adjustments are to be made...referring ONLY to those appropriate to the box 3 $$ amounts.

[bbjaspan]

1. I understand how to do this, have been doing this for many years.
2. I have only one 1099-INT with amounts in both boxes 1 and 3. I created a new 1099-INT with only box 1 and no adjustments. I went into the pre-existing 1099-INT and removed the amount in box 1, keeping the amounts in boxes 3 and 12 and the adjustment for accrued interest.

Result: UGH! Before this change, TurboTax GA Schedule 1, line 10, Interest on U.S. obligations was high by $123. Now it is low by $460. Neither of these amounts are close to any relevant amounts.

After that, being desperate, I deleted both of those 1099-INT forms, saved the file, closed TurboTax, opened it again with that file, and reentered those 2 forms, one with box 1 only and the other with the other stuff. Same result.

THIS IS SO UPSETTING! HOW WILL I GET MY TAXES DONE?

[SteamTrain]

@bbjaspan 

So....The US govt 1099-INT has $$ in box 3 and 12, and accrued interest in the follow-up.

So the $$ transferred to GA as a subtraction should be 

Box 3, minus box 12, minus accrued interest .

_____________

Just checking..BUT:

In case you didn't realize it,  the Accrued Interest referred to here, was the extra $$ you paid to the seller of the Govt bond for the interest that hadn't yet been paid out on that bond.

[bbjaspan]

I owe you a huge thank you for the previous advice (splitting the 1099-INT into 2 forms) and I owe you a huge apology for continuing to blame TurboTax for the remaining discrepancy which was due to user error! I had failed to include the ABP Adjustment in my own calculations. GA Schedule 1, line 10, Interest on U.S. obligations now reconciles! Thank you!! Thank you!!

I do have to ask though, how is a TurboTax user supposed to figure out to enter 2 1099-INT forms, separating lines 1 and 3? This is a bug that must be fixed.