Where is the MA State (Part Year) question to make ADJUSTMENTS for Interest from US Obligations?

[crash345u]

I cannot find where to make an adjustment  to the TT ONLINE MA State return for US Obligations which were entered during the Federal interview. If this adjustment is not made TT allocates 100% of the amount entered from the federal return to MA. I AM able to enter the PART YEAR INCOME received while living in MA but I need to adjust the FEDERAL ADJUSTMENT similar to the NC State Interview question showb below.

A screen shot showing the interview question and a detailed destription of steps to get it would help. I HAVE ENTERED THE PART YEAR INCOME PORTION so TT knows my proper residency status. You cannot use the MA screen which prompts for "other exclusions", which will just add to the federal adjustment and minus signs cause a review error!!

Below screenshot is  for NC, I see no such prompt for MA. The amount under "federal adjstments" is EXEMPT  from state income.

[AmyC]

Yes, MA does allocate all of it to nontaxable. The difference is NC starts with the federal AGI and subtracts out to get to the taxable portion. Instead, MA has state defined income so you don't want any of it reported. Since the states arrive at taxable income using different methods, it can be confusing.

[crash345u]

So how do I tell TT to allocate the proper amount of US debt obligations to MA? The way the TT program appears to work, all of it gets allocated to MA which is simply not correct.

Can you confirm this is a problem and I am not missing a question somewhere?

[AmyC]

You are missing the way MA income is calculated. MA creates its own path to taxable MA income and none of the federal is taxable so all of it is left out of the calculations. NY starts with the federal and you have to move parts and pieces around. Your MA is correct with all of it being excluded.

There is not a problem, states just handle how to get to their taxable income differently. 

[Pip_12_mn]

@AmyC  Why do you say "none of the federal is taxable in MA"?  75% of the 1099-DIV income that I received while living in MA was from US debt per my Brokerage supplement, therefore 25% is taxed at the state level.

I'm not sure what you mean by  "MA creates its own path to taxable MA income and none of the federal is taxable so all of it is left out of the calculations." This makes no sense to me.

The 1099-DIV income and US Debt exclusion each get allocated based on the time I lived in each state.  Why is this not clear, am I missing something? Hopefully this will clarify my problem:

MA 1099-DIV income  Before MA Exclusion = 3185

NC 1099-DIV income  Before NC Exclusion = 3909

FEDERAL 1099-DIV   =                                               7094

Total US Debt Obligations = 5522 (NOT ALL of the 1099-DIV income was from 100% US Debt!)

MA EXCLUSION due to US Debt = 2392

NC EXLCUSION due to US Debt = 3130

TOTAL State EXCLUSIONS =          5522

MA 1099-DIV income  Before MA Exclusion = 3185

MA EXCLUSIONS due to US Debt =                        2392

MA 1099-DIV Income AFTER EXCLUSIONS         793  (This should be my MA SCH B L7 DIV income)

TT is forcing all of the 5522 entered in the Federal return to be used in MA, wiping out ALL of the MA 3185 income and setting SCH B Line 7 = ZERO. There appears to be NO WAY to tell TT to adjust the 5522 exclusion down to 2392. Minus signs entered anywhere cause an error during the state review.

How do I get TT to exclude the proper amount of US debt so that MA SCH B L7 is correct?

[CatinaT1]

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[Pip_12_mn]

Yes I did resolve the problem by filing with other tax software. TT has a serious problem with the part year MA  return for this scenario.

Bummer, it cost me >$120 for TT Federal and two states and I can't even get a refund. The software that worked only cost $19.95 to efile federal and two states. Honestly after this experience I'm considering switching from TT.

Yes I had all the updates, yes I did clear cache and cookies. I called customer service and they agreed there is a problem in the program. Very disappointed with TT this year and I might have understood if their refund policy was better. The other tax software company offerered an "Unconditional no questions asked" refund if you are not satisfied for any reason.