On the 1099-DIV, what boxes have entries? Were you required to click My form has info in other boxes? and make entries?
What state tax returns are you completing?
The Federal government taxes income you receive from its own bonds and your state may not.
What about dividends from U.S. government bonds?
The federal government taxes income you receive from its own bonds. Although your state doesn't tax income generated by U.S. government bonds, each state defines government bonds differently.
To find out if these dividends are taxable in your state, review your 1099-B along with the supplemental pages from your consolidated tax statement. If you can’t find the info, you might be able to get it from your brokerage or mutual fund company website. See this example.
Once you have found the info in your documents, just follow the screens here and we’ll help you enter an adjustment for the nontaxable amount in your state. When you get to your state taxes, we'll subtract the adjustment from the income reported to your state.
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Thank you for the reply. I very much appreciate the insight and the validation.
I am convinced there is a software glitch in one of the worksheets in turbotax online, but have been unsuccessful in finding technical help. This is the first time in 20 years I am having trouble getting turbotax online to put the correct figure on the correct line of a federal or state tax form.
I understand the tax situation both for federal and state purposes. I would be comfortable filling out the tax return forms on my own but want the convenience of e-filing that turbotax provides. I have tested the problem using different state addresses, yet the technical problem persists. (I am a full year resident of one state, but as a test, I simulated the problem in at least one other state return that I then deleted.)
I am not required to click or make entries in any of the "My form has info in other boxes." Rather, it is on the next turbotax page that the trouble begins. At that page, I check the "A portion of these dividends is U. S. Government interest" box. After I check that box and click "Continue" turbo tax takes me to the next page that says "Enter the amount of dividends reported on this 1099-DIV that represents interest from U.S. Government obligations." So far, this is all extremely familiar as I have done this a gazillion times before without any surprises or trouble.
After I enter the correct amount in the field and click "Continue", turbotax brings me back to the "Review your 1099-DIV info" page (as expected). However, once I return to the "Review your 1099-DIV info" page, I find that the figure I just entered on the previous page is gone. It's left wallowing somewhere in the ether not to be found on any internal turbotax worksheet. [Poof.]
Give us the actual $$ values in boxes 1a, 1b and 2a.......and then the $$ amount you entered from US Govt securities....and we'll test it. (though box 2a isn't likely to be necessary)
.......or, you could try deleting that 1099-DIV entirely, and re-entering the data manually on a brand new 1099-DIV. (i.e......Don't import the form form a financial provider, and do not re-use last year's transferred-over 1099-DIV form)
Thank you for the troubleshooting suggestions. I have tried everything you have suggested, to no avail. [I have been trying everything I can think of over the past 3-4 weeks.]
Here is a practice case (home address = PA):
Box 1a = $285
Box 1b = $0
Box 2a = $0
U.S. Government interest = $103
PS: I also have tried every permutation of entering $0 and/or leaving the boxes blank (and/or using fake values greater than $0 as a test).
Yep, that's a software bug in the "Online" software. I thought for a moment that it might be something related to PA software, even though it is entered in the Federal section...but I get the error with NC software attached to my test file account too. Also tried with boxes 1b and 2a either blank or with 0.00...no effect, also tried it with box 1a = $285m and 1b as $150 (in case the software was was looking at the wrong box)
No problems with my desktop software though
Best bet is to officially report it to Customer Support...let them confirm it and writ up a correction ticket.
IS this something you can throw at the moderators for correction. Online software only.
Also two others with the issue (and me), but they never followed up with details to revisit the situation. Not many appear to have encountered it yet...but perhaps many folks don't bother breaking out that particular Govt Interest amount. ..... I checked for an FAQ in case it was being dealt with already, but didn't see one:
This a continuing issue I have been sending messages to Turbotax about.
My situation is exactly like the one "imstumped" described below this msg. The only difference...I live and file in Minnesota. I have always been able to enter right through this section without a glitch. I really do not want to give up this subtraction on my state return and that is what happens if I enter 0 on the page that asks for a portion of this income is from U.S. government. Otherwise, I get "needs review" in red letters.
Why does Turbotax not contact me or anyone else, or just correct the issue?
This BUG, is just being discovered since a TON of 1099-DIV forms have been issued over this weekend....so a bunch of folks discover it all at once.
You don't have to give it up...just wait a couple weeks for it to get fixed...the software folks have to investigate it and figure out what to do to repair it.....it may not be a simple switch on/off type of setting (or use the far superior Desktop software)
Thank you for pointing me in the correct direction of technical support. Will give the programmers a couple of weeks to catch up. If that doesn’t work, will probably end up abandoning the product and filing directly on the state’s DOR website.
This is a very simple fix. On the page where you are entering the 1099-DIV Box 1a, 1b, and 2a - simply click the "My form has info in other boxes" checkbox. Click continue. On the next screen click "A portion of these dividends is U.S. Government interest." Click continue. On the next screen enter the Government interest amount. Simply checking the "My form has info in other boxes" the error will be resolved.
I can not thank you enough for this work around!
One small step that is new this year was causing all my headaches. Do not know why Turbotax changed this, but your advice did the trick for me.