Kansas Schedule S box A1 - how does this amount get calculated

[AbTrack]

I am trying to figure out how box A1 of the Kansas schedule S is calculated by TurboTax.

I started a stripped down test return in order to find out which entry in my Federal tab caused an amount to appear on the schedule S.

It did not take long to find the entry in my 1099-INT section that caused the amount to appear in box A1 of schedule S.

The 1099-INT has these values:

Box 1: $0.78

Box 8: $3,000.00 ($1,500 is from Kansas, $1,500 from other states)

Box 13: $1,610.24

Before entering this 1099-INT, there was no schedule S.

Entering the 1099-INT values resulted in creating a schedule S with $695 in box A1.

I do not understand how $695 can be obtained from the three 1099-INT values.

Anyone an expert on the Kansas schedule S?

I am working in TurboTax Premier 2022 installed on my iMac computer.

Ok, after I wrote the above, I tried removing the box 13 amount and then checked the schedule S box A1 which now has the value of $1,500. Which is what I would expect to see.

So now my question is, how does the $1,610.24 bond premium on tax-exempt bond get converted to $695 in box A1 of schedule S? I cannot find anything in the KDOR schedule S instructions that talks about this.

[AliciaP1]

The 2022 KS Schedule S instructions for box A1 state that you must deduct the expenses "directly incurred in purchasing these state or political subdivision obligations".  The bond premium is an applicable expense.  So, since half the amount in box 8 is attributable to KS, TurboTax is dividing the Box 13 premium fee in half and deducting that from the income.  ($1,610.24/2 = $805.12, $1500 - $805.12 = $694.88 which is rounded to $695)

[AbTrack]

AliciaP1, thank you very much for solving this for me!!!

[AbTrack]

Submitted our KS tax return and received a letter back from KDOR requesting backup documents for KS schedule S. There are only 2 values on our schedule S, one in A1 and the other in A13. No problem with A13.

But I cannot find the source of all the numbers that were used by TurboTax to calculate A1.

The above recommendation for the bond premium was done.

If I add up all the Kansas non exempt interest/dividends I get $6,455. Subtract half of the bond premium results $5,650.

But TurboTax calculates $5,471 for A1. A difference of $179.

What other subtractions/expenses could there be? Foreign tax paid?

I have a stripped down test return where I only entered the 1099's that have exempt interest. This test return results in A1 equal to $5,650. And additionally a spreadsheet with the same result.