Massachusetts Bank Interest Exclusion
I have been using TurboTax Desktop for over a decade, and the 2024 tax year is the first time this issue has come up for us. When inputting our bank interest info from our 1099-INT (Federal Taxes > Wages and Income > Interest on 1099-INT), it correctly assesses the federal and state income taxes. However, on the next page (do any of these uncommon situations apply?), I check the box for "My state doesn't tax all of this interest" and select Massachusetts from the dropdown. This selection does not impact the tax return at all. Unchecking the box also doesn't affect the tax return at all.
It seems as though the $200 Massachusetts Bank Interest exclusion for those married filing jointly is not being factored into the tax assessment. Is anyone else running into this problem? I tried deleting the 1099-INT form and inputting again with the same results.
The Massachusetts state income tax rate is 5.00%, therefore the $200 exclusion equates to $10. While not a significant amount, the $10 adjustment should be getting made and it isn't. This is the first time I've ever run into this issue as the correct adjustments were made for all previous years using TurboTax.
