Anything that is incorrect in the Federal return should be deleted or corrected in the Federal return.
- You can click on Federal, then Income & Expenses.
- Find Interest or Dividends on the list and click Edit to the right.
- Form the list, find the entries that are wrong and either delete them by clicking on the trash can, or Edit them to correct.
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I had a similar problem and the prior response won't resolve it for me. Here are the specifics...
- I imported 1099 info into my federal return.
- One of my dividends was generated by a municipal fund that is FEDERAL tax exempt.
- The information in the federal return is correct.
- In the Turbotax NEW HAMPSHIRE STATE return, turbotax added them to my DP-10
- This info is CORRECT for line 1c "enter your FEDERAL tax exempt interest income"
- This is INCORRECT for line 4, section IV: NEW HAMPSHIRE tax exempt income. The FEDERAL tax-exempt investment income is NOT NEW HAMPSHIRE tax exempt income.
- Because turbotax puts the total federal tax-exempt income into line 4, section IV, sections I, II, and III on line 4 must be completed.
- I can override the number in section IV, but cannot override sections I, II, and III.
Since the New Hampshire DP-10 line 4 now contains blank entries for sections I, II, and III, errors are generated in turbotax and NH rejects the e-file request.
How do I remove all the entries on line 4 of DP-10 without causing turbo tax errors and efile rejections?
OK -- I think I figured it out...
To resolve this problem, you must override Turbotax entries on the Federal 1099-DIV form.
- Turbotax automagically entered "NH" as the state where the funds were earned.
- I am a resident of NH, but this entry is incorrect: The Municipal funds were not earned in NH.
- As a result, they are FED tax exempt but not NH tax exempt.
- I manually added/overrode the following Fed 1099-DIV entries to resolve this:
- In Box 11, entered "XX" for the state entry to state these funds were NOT earned in my state of residence (NH). Box 11a = "XX", Box 11b = "100" (pct of funds earned there), Box 11c = the original exempt amt.
- At the bottom of Box 11, entered "XX" again for "State where dividends were earned"
This resulted in Turbotax NOT placing the same funds as "tax exempt" on the New Hampshire DP-10 form. No turbotax blank/errors and no efile errors.
Hope this helps someone...