Here's a complication...   1)  for CA residents, they can only declare the CA amount from box 11...only if the Fund concerned  has invested at least 50% of its holdings in CA Bonds or US Government obligations./...otherwise you must t select "Multiple States" for all of it  (At the end of the drop-down states list).   2) IF the fund does qualify, when you get to the listing page, you only have to break out the CA amount, any US Territories, and the remaining amount is just totaled as "Multiple States"  (You don't have to list all the other states) _________________________ An example of a breakdown for an NC resident would look like this:           ... View more

@LP1968    DID you eve figure it out?    Perhaps too late, but since your fund qualifies:   1) You have to have a listing or do calculation of exactly how many $$ came from US Obligations for that fund.  Those $$$ are a part of box 1a, not box 11 .   Then Edit that 1099-DIV form, and you step past the main page, and on a followup page there is a checkbox you need to check that says "A portion of these dividends is  US Government Interest"  ...and 2)  as you "continue" from that page you'll be able to enter the exact $$ amount you calculated previously  (normally it's the first page after that checkbox page...but can be a page or two later if you checked more than one box on that page)   ________________________________________________ ... View more

Might be nothing to do with your entries for the tax-exempt part (box 11 and the followup to set as Multiple States)....Maybe it's this..   Edit that 1099-DIV again...look two things 1) if box 1a is empty/blank on the main form, the Online software seems to require that must have 0.00 in it . 2) if you have a box 1b entry, then box 1a must be greater or equal to box 1b ________________ Could be some other stuff, usually the software will tell you exactly what it is having a problem with when you go thru the Federal Review and error check if it's something else.   ... View more

If you are looking at the total on the main menu page...that total is the total of box 1a and box 11 on all 1099-DIV forms you entered....thus a total of both Taxable and Tax-Exempt entries. ... View more

@popomama    Did you figure it out?   Box 12 should be the exact amortized premium for the time you held the bond in that year...so it doesn't need adjusting any further.  Then the Accrued interest  is added separately in the followup page. _________________________ Note about Software Complications:       The possible complication, though it is a software complication, is that IF your 1099-INT from that provider reports interest for several categories..like in any combination of boxes 1, 3, and 8 ...all in the same 1099-INT form, you should remove the interest for the bond type you just purchased, and put it on a separate 1099-INT reporting just  the $$ associated with that particular bond type and then put the accrued interest declaration on that separate 1099-INT.    Example:   if the accrued interest was for a treasury bond you bought, and the financial institution put $$ in boxes 1, 3, and 8 for other holdings you have...for a treasury bond, you would remove all of the box 3 $$ (and box 12 $$ too if any shows), and create a separate 1099-INT from that provider showing only boxes 3 (and 12) and declaring the accrued interest paid for the bond on that 1099-INT form  (a followup page to the main form).    IF you don't do that,the software will divide up the accrued interest proportionally among boxes 1, 3, and 8.  Yeah, would be nice someday if TTX would allow separate entries for accrued interest...targeted to the proper box.   ... View more

You "prove" the amount paid...by accessing your purchase confirmation documentation from whatever financial provider sold you that bond .  Print it out...it should contain that information as a line item.   One thing to note however, is that you cannot list it as accrued interest paid, unless that bond issued an interest payment after you bought the bond...but must be  the same year that you bought it.   1)   For instance, if you bought the bond in Nov of 2019, but the bond did not issue it's next interest payout until Feb of 2020, then you should not enter your declaration of accrued interest paid until your file your 2020 taxes early in 2021.   2) a Second complication, though it is a software complication, is that IF your 1099-INT reports interest for several categories..like in any combination of boxes 1, 3, and 8 ...all in the same 1099-INT form, you should remove the interest for the bond type you just purchased, and put it on a separate 1099-INT reporting just  the $$ associated with that particular bond type and then put the accrued interest declaration on that separate 1099-INT.  Example: if the accrued interest was for a treasury bond you bought, and the financial institution put $$ in boxes 1, 3, and 8 for other holdings you have...you would remove all of the box 3 $$ (and box 12 $$ too if any shows), and create a separate 1099-INT from that provider showing only boxes 3 (and 12) and declaring the accrued interest paid for the bond on that 1099-INT form  (a followup page to the main form).    IF you don't do that,the software will divide up the accrued interest proportionally among boxes 1, 3, and 8.  Yeah, would be nice someday if TTX would allow separate entries for accrued interest...targeted to the proper box. ... View more

@MacWood    You really didn't specify how your NC retirement $$ were being reported to you at year's  end .  Were they on a W-2? or on a 1099-R form?   We need to be a bit more clear here on some subtle differences to the answer @SusanY1  provided. Those directions are  only used if your Bailey retirement income was issued on an actual W-2 form, which apparently isn't all that common, but does occur.   IF your NC Teacher's retirement income  tax form is shown on a 1099-R form, then the Bailey selection is dealt with in the Federal taxes area of your software interview, when you enter that 1099-R form....on a followup page after your main 1099-R entries, you will make the Bailey selection (picture below)   1)  For the NC Distribution Amount, you would enter the value of box 2a of that particular 1099-R form.    2)  IF box 2a is empty or 'unknown", then it would be the Federally-taxable portion of box 1, once that value has been calculated.   NC starts with the Federal AGI as the starting point for it's tax returns.....that Federal AGI includes the box 2a value (or the federally taxable amount of box 1 in that starting AGI ).  Once you click on the "Bailey Settlement" button on the followup page (after you enter the main 1099-R  form in the Federal section of the software)...once you click on that Bailey Settlement button,   the "North Carolina  Distribution Amount" entered becomes the $$ value it will deduct from the Federal AGI to create a new NC-AGI....so that value is critical to be entered. ________________________________________   ... View more

1)  For the NC Distribution Amount, you would enter the value of box 2a of that particular 1099-R form.    2)  IF box 2a is empty or 'unkown", then it would be the Federally-taxable portion of box 1, once that value has been calculated.   NC starts with the Federal AGI as the starting point for it's tax returns.....that Federal AGI includes the box 2a value (or the federally taxable amount of box 1 in that starting AGI.  Once you click on the "Bailey Settlement" button on the followup page (after you enter the main 1099-R, or CSA-1099-R form in the Federal section of the software)...once you click on that Bailey Settlement button, it uses the "North Carolina  Distribution Amount" entered becomes the $$ value it will deduct from the Federal AGI to create a new NC-AGI....so that value is critical to be entered. ________________________________________     ... View more

You chose the wrong payment entry point on the NC website:  The starting entry page looks exactly the same, but the URL is a bit different...go here:   https://www.ncdor.gov/taxes-forms/individual-income-tax   Then click on the "Pay Original Tax Due" button on the rt-side:   ___________________________________________           ... View more

What is e-filed is everything the state of NC requires on an E-file....BUT, NC computers can kick out a tax return randomly for checkup, or if it sees something claimed that looks somewhat suspicious.....the auditor can then request separate paper forms at any time, of any kind, to review or double-check your entries.    AND, depending on when you filed, there may have been a later correction to the NC software for some bug in their calculations, and you we just unlucky if filing before he bug correction was issued.....though TTX usually informs people by email, if a bug correction  affects an already filed tax return   Anyhow, IF they never randomly checked up on people occasionally, there would be rampant fraud ... View more