How do I remove my interest income from my state return?

[robert-segalw]

I have interest income on my federal return. I have to file 2 state returns (res and non res). None of my income is from non-res. When I go through my non-res return and adjust the different types of income (which one should go on my state return) it does not list interest income. So once I'm done my non-res state return still shows interest income when it shouldn't. thanks

[rjs]

What state? Every state is different?

Is it just ordinary interest in box 1 of a 1099-INT?

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[robert-segalw]

I did reach out to live help and they couldn't find it either.

It's for the state of Wisconsin.

On my federal return this item is on Schedule B box 4 and thus in box 2b on my 1040. 

When I go through the income items on the state returns it won't bring this one up to un-assign from Wisconsin. 

[Mike9241]

you should have a Wisconsin form 1NPR - non-resident and part-year resident form.

the federal column should be the same as the federal 1040 in the Wisconsin column only interest taxable there which probably should be zero since you are a non-resident. it can't be done through the federal or your resident state

1NPR instructions

Line 2 Taxable Interest
Column A
Federal column Fill in the amount from line 2b of federal Form 1040 or 1040-SR.
Column B
Wisconsin column Nonresidents – don’t fill in any amount of your interest except your share of interest income attributable
to Wisconsin and passed through from a tax-option (S) corporation, as reported to you on Wisconsin Schedule 5K-1. Note:
Interest received from a land contract sale is not taxable to a nonresident of Wisconsin. Part-year and full-year residents –
figure the interest received while a Wisconsin resident. For the period of time you were a nonresident, include your share
of interest income attributable to Wisconsin and passed through from a tax-option (S) corporation, as reported to you on
Wisconsin Schedule 5K-1.
Caution:
• If including interest reported on Schedule 2K-1, 3K-1, or 5K-1, only report the Wisconsin source amount of the amount
reported in the federal column.
• If you are a shareholder of a tax-option (S) corporation or partner of a partnership that elected to be taxed at the entity
level, include any interest shown on Schedule 3K-1 or 5K-1 in the Wisconsin column. Any income, gain, loss, or deduction
reported on these schedules is removed on Schedule M, line 30, 32, 80, or 82

[sman23]

And how do you put 0 for interest in WI using the TurboTax software?

[MonikaK1]

First, be sure you have entered all of your income in the Federal section of TurboTax and answered any applicable questions.

If you have more than one state return, do the nonresident state(s) first and your resident state last.

When you start the Wisconsin return in TurboTax, go through all of the interview screens carefully and answer the questions. When you get to this screen (see screenshot):

Click the Start button next to the line for adjustments to State and Municipal Interest.

On the next screen, a box is provided to enter the amount of Wisconsin earned interest from state and municipal obligations which is tax-exempt for both federal and Wisconsin tax purposes (a list is provided at the Learn More link).

Go through the remaining screens to make sure only Wisconsin income is included on the state return.

When you are finished, you can preview your return before filing to find out how your taxes were calculated. See here for details. 

[sman23]

After following the above steps, Turbo Tax attached Schedule M that has the line "State and municipal interest" where it put the number I provided, but this is not what I need because the form 1NPR still has interest listed under the line "Taxable interest", which was already paid in a different state tax form. Besides, state and municipal interest refers to "the amount of Wisconsin earned interest from state and municipal obligations which is tax-exempt for both federal and Wisconsin tax purposes." But I need to handle the interest earned from a bank account based on the 1099 form I received. Thanks.

[AmyC]

I am trying to follow. You have a 1099-INT which you reported to state A. You have WI income that is exempt for both fed and state. You have bank interest and are trying to do something. Interest from a regular bank account would not be exempt.

Can you clarify what you want to accomplish?

[sman23]

I never said that I bank account interest should be exempt. Whoever gave me an advice above guided me through the incorrect steps. Here is my situation. I file taxes with a state A as a resident and WI as non-resident. I included bank account interest in both federal and state A tax forms. However, TurboTax automatically and incorrectly carries bank account interest to WI state 1NPR form making me literally pay the bank account interest tax in both states, but this should not happen as I lived and earned this interest only in one state. TurboTax does not provide a way to edit taxable interest on 1NPR, so I just ended up filling out the paper forms and sending them to WI DOR as it was easier to do than to navigate TurboTax software.