Tax Exempt Interest on Georgia Tax Return

[farr_karen]

I have 2 problems:

1.  I have entered the tax exempt interest information on the Federal tax input screen.  Entry breaks down the exempt interest between Georgia interest and Multi State interest.  The Multi State interest should flow to my Georgia tax return but it does not appear on the Georgia Schedule 1, Additions to Income Line 1: Interest on Non Ga Municipal and State Bonds.  I can enter this information manually as Other if I have to.

2.  Earlier in the prep process I selected the US Interest box by mistake on the Federal input.  This entry did flow to the GA return on Schedule 1 as a subtraction from income.  Even though I corrected my mistake it is still showing on the GA return and needs to be deleted.  This might be why I'm having the first problem.

Thank you!

[MarilynG1]

1. You are correct, that you need to manually add back non-Georgia interest to Georgia income.

2. Interest from Direct Federal Obligations (such as Treasury Bonds & Notes) and other interest that is specifically exempt by Federal statute are not taxed by Georgia (including dividends received from mutual funds that derive income from these sources).  

Here's more info from Georgia Dept. of Revenue. 

@farr_karen 

[farr_karen]

I need to know how to remove the US govt interest that was transferred to the GA tax return due to my error.  I can't file the return with this entry reducing my Ga taxable income.  I can't even remove it manually.

Thank you for your response on the manual entry for the non Ga interest.  I have to think there is a software problem since it didn't automatically flow to the Ga return and should be on the specific line for non Ga interest.  It has worked correctly in past years.  The program entry for this item changed for 2024.

[KrisD15]

What form was the interest enter on? 

Can you delete that form and re-enter it making the proper selections?

How to delete a form using TurboTax 

[farr_karen]

I tried deleting the input and it didn't change the error on the  Ga schedule.  There is not really a form to delete.

The 1099 is downloaded from Fidelity.  Then I click Continue and it takes me to the page to input the breakdown of the tax exempt interest between Ga and MultiState.  This information should flow to the state return but its not transferring.   I cant figure out what I am doing wrong.

[farr_karen]

I will delete the 1099 and download again. 

Thanks so much for helping me!

[DaveF1006]

Check GA Schedule 1. There should be an amount of the Non-Georgia amount on Line 6, and the net adjustment on line 14.  Check to see if these totals are correct. This amount should be the amount of non-Georgia tax exempt interest.