Exempt-Interest Dividends

[SteveD9]

I can't get the correct adjustment for state specific exempt interest dividends (in my case Pennsylvania). It seems the adjustment should be made on the Div Inc Wks but when I enter the adjustment it just adds the amount to the already existing total amount of exempt interest dividends. For example, one of the 1099-DIVs has $422 total exempt-interest dividends with $112 being allocable to PA. If I put the $112 in the adjustment box it just adds another $112 to the exempt-interest dividend amount which is wrong. 

[George4Tacks]

Did you try a negative number? 

  -112?

[Skylane]

I think you can Make the adjustment on the PA worksheet 

[SteveD9]

I tried entering it as a negative but that's not correct. 

I do make the adjustment on the PA worksheet but it puts the adjustment on Line 4 of Schedule B and incorrectly adds it to the exempt-interest dividend income that is reducing the total dividends. There should be a way to edit line 3 of PA Schedule B to the correct amount of PA exempt interest dividends. I've done this in other tax software.

[George4Tacks]

It should go on Line 3 of PA Schedule A 

[SteveD9]

No, it's reported on Schedule B. But my question is how to make the adjustment to the federal number to put the amount that is tax exempt in PA on that line, not the full amount. The only way I can figure out how to do it is to override it which I don't want to have to do.

[Skylane]

The gross amount is reported federal  double click on the line on sch b and there’s a worksheet where you can allocate % or amounts to whatever stares you need.    OR you can make the allocation directly on the state returns 

[SteveD9]

First, thank you for all the responses.

The only boxes I see on the federal worksheet are the percentage for private activity bond interest and line 4 where you input the state abbreviation. 

Where on the state tax return do I make this allocation? For PA there's a Div Inc Wks but I can't figure out how to make the adjustment. It pulls in the federal amount. 

[IntuitSusanY1]

If it is pulling in the full amount to PA go back to the federal and change the state code to "XX", then you should be able to make the adjustment for the amount allocable to the state. 

If this still doesn't give you the result you are looking for without an override, go back to federal again and make two separate dividend entries (as if you had two separate 1099s).  

Enter the amount of federal less Pennsylvania in one and use state code XX, then enter the difference and code that one to PA in the state box.  

[Skylane]

@IntuitSusanY1  the user lookup feature is broken unless tagged user is part of thread…  so I’m tagging you here… Please look at and comment on the post below as there have been numerous questions on same.  FWIW, I think the recent addition of the experts and their level of tax and program functionality is valuable, needed, and welcomed. Thanks 

https://accountants.intuit.com/community/proseries-tax-discussions/discussion/new-jersey-quarterly-e...