Turbotax not transferring all tax-exempt dividends to Montana state return.

[Lowkey5]

I have 3 separate 1099-DIV forms (my brokerage account, my wife's brokerage account, a joint brokerage account) with tax-exempt interest shown on each.  In TurboTax Premier I've entered the tax-exempt income for each 1099-DIV separately and checked the box "I earned tax exempt dividends in more than one state".  In the drop down menu, I selected "More than one state" and entered the tax-exempt interest earned in my state (Montana) and the amount earned in all the other states combined.  When I look at the Montana return, the only tax-exempt interest from these three 1099's that is being carried forward is the amount from the joint 1099-DIV form.  Both the Montana and the Federal return are being filed as "married filing jointly."  I've tried changing the "Ownership" of the forms from "taxpayer" and "spouse" to "joint" and it makes no difference.  Only the amount on the one 1099-DIV is being transferred to the Montana return.  Any advice on how to correct this issue would be appreciated.  Thanks!

[AmyC · Accepted solution]

It seems that you understand the program and the tax situation. Sometimes multiple of the same tax form will create a piece of data that gets stuck. A full or corrupted cache can cause problems in TurboTax, sometimes you need to clear your cache (that is, remove these temporary files). You may need to delete one of the forms that isn't carrying, or both of them. Keep the one that is carrying the information correctly. You may need to do this between each form adding them back.

For stuck information follow these steps:

Online version:

1. Delete the form/ worksheet- if possible, see How to Delete  
2. Log out of your return and try one or more of the following:
   • Don't use Internet Explorer.
   • Clear cache and cookies,
   • Sign in using a different browser.
   • Sign in using a different device.
3. Log back into your return.
   • Enter the information again.

Desktop version: 

1. Delete the form
2. Save your return while closing the program.
3. Update the program
4. Open
5. Enter the information again.

[Lowkey5]

Hi AmyC,

I followed your steps for the desktop version and it corrected the problem.  Thank you very much for the help!

Obviously, it would be best if the software simply worked as expected as I could have easily relied on the "guaranteed 100% accurate" calculations and missed the issue.  Hopefully, someone on the programming team will take a closer look and correct the problem.  Not complaining, just saying.  😀

Thanks again for your help and have a great day!

[drm_sandiego]

I have a similar problem with my 2024 California return.  I have done multiple saves after data entry, shut down the program and restarted, downloaded updates faithfully, shut down the computer and restarted, deleted and re-entered selected1099 docs that I thought might be an issue.  Still incorrect.

"Stuck data" is corporate-speak for "software error", which is what is causing the problem.  

I am not happy about having to delete and re-enter the data for my eighteen 1099 documents, but I'll probably do it.  And if the program still doesn't calculate correctly, I'll end up papering over the problem by entering adjustments on Line 12 of the CA Interest and Dividend Adjustments Worksheet.

Dear Intuit, please investigate and fix this problem.

[BrittanyS]

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

[drm_sandiego]

Third attempted reply - this time the site deleted part of the Token that you asked that I provide.  Any suggestions how to get it to you?

*********************************

Token [removed]-78280626

Other information:

Note that I was commenting on a problem with someone else's Montana state return, but my reply was specific to my California return.

1. I believe 1040 line 2a is calculating tax exempt interest incorrectly.  The number transferring to the CA return is exactly what shows on 1040-2a - which is still not right.  1040 taxable interest (line 2b) is calculating correctly.

2. The number on the CA adjustments sheet for "questionable" tax exempt interest is calculating incorrectly (Int/Div Adjustment Wksht line B in the smart worksheet)

3. Why do I think TT is calculating incorrectly?  I entered all of my interest and dividends into an Excel spreadsheet.  I can validate most of the numbers I see in TT.  However, I can find no combination of interest/dividends/taxable/tax-exempt numbers that yield the number TT calculates for 1040 line 2a, or for the CA return on the adjustment worksheet Tax Exempt Interest Smart Worksheet line B.

4. I did not delete my 18 schedule B worksheets and re-enter.  However I did delete all of the worksheets that had any kind of tax exempt interest.  I saved, closed the program, re-opened the program, and re-entered the data.  No change.  

5. I think I noticed that adding and deleting the worksheets did not have the impact on 1040-2a and CA Smart Worksheet line B numbers that I expected.  The numbers did not change exactly by the amount deleted in the worksheets.  In some cases it seemed as if there is something besides simple addition and subtraction going on before these numbers are updated.

[BrittanyS]

Here is how line 2a is being calculated.  Reviewing schedule B in forms mode of TurboTax tax exempt income is:

• Interest Income - $11,737.50 - $2,972.45 (bond premium on tax exempt bond
• OID - $517.56
• Dividend - $9,927.80
• Dividend - $1,432.07

Totaling - $20,642.48 and rounded to $20,642 on the return.  

The bond premium is subtracted from the interest income.  According to the IRS, "if you acquired a tax-exempt bond at a premium, only report the net amount of tax-exempt interest on line 2a of your Form 1040."

See the link below for more information:

• Tax exempt interest

@drm_sandiego 

[drm_sandiego]

Thank you for your quick and clear reply.  My assumption of a computation error was wrong.  

I can now proceed with confidence.