I have Tbill interest which is taxed by the Feds, but tax exempt for the state. If I put the interest amount into 1099-Int box 1 and box 3, it is lowering my federal taxes but not the state. It should be the other way around when you put the amount into box 3, right?
There is also a box on the next screen that says "our state doesn't tax all this interest", but the pulldown menu doesn't have CA and all states should be in there as Tbill interest is tax free for all states.
Is TurboTax planning on fixing this?
I'm not understanding what that reply means? The total is in box 1, so how would only putting everything in box 3 fix this bug? And the 1099 I got has the total amount in box 1, so I can't really change that.
OK so I double checked the 1009-INT and it is only in box 3. But when I make box 1 $0, and only put the interest in box 3, then BOTH the federal taxes AND the state taxes go down. Tbill interest is taxable on the federal so why is that tax now going down?
1) please remove the 1099-INT statement from Turbo Tax
2) what is the federal refund / tax due showing on the screen
3) what is the state refund / tax due showing on the screen
4) re-key in the 1099-INT form. only input Box 3 and no where else
5) what is the federal refund / tax due showing on the screen. The refund should now be lower (or the tax due should be higher)
6) what is the state refund tax due showing on the screen. There should be no change from step 3
are you using the online version or the CD / Download version ?