I have Fed Tax exempt income of 1300. I have NJ local obligation of 300. How do I post these two entries?

[ThomasM125]

For the tax exempt income, you would need to report it based on what type of income it is. For instance, if you have interest income from state bonds that is exempt on your federal tax return, you would enter that as a Form 1099-INT entry. That would be in the Wages and Income section, then Interest and Dividends, then interest on 1099-INT. 

I believe you mean you have a local tax due in New Jersey for the second question. That is usually subtracted from your wages by your employer and reported in box 18 through 20 on your W-2 form. If so, TurboTax should handle that when you enter the information in the New Jersey tax section in the program.

[baldietax]

the round amounts make me think you're referring to individual muni bonds reported on 1099-INT with 1300 in Box 8 and $300 is from NJ.

after you've input the 1099-INT there is an interview screen to specify which state the tax ex interest is from.  you can use the "More Than One State" option and put $300 from NJ and $1000 from "Multiple States" but check the outcome on your NJ state return.

But there are some complications if you have any adjustments for premium (Box 13) or accrued interest paid, on a 1099-INT with mixed income types (Box 1 or 3 along with Box 8), or if your Box 8 has a mixture of bonds taxable or tax exempt in your state.  Turbotax can't tell how to apply these adjustments to the right income box or to the subset of bonds taxable in NJ to get the right outcome for your state tax.  The bottom line if you have these adjustments is to split up the 1099-INT, input the muni related boxes separately from other income, and further split it into NJ and non-NJ income.