Amended state return changing Adjusted gross income on Federtal return

Forum|Forum|1 year ago
October 26, 2024
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I am filing an Amended state return because I thought the Turbo Tax Program automatically pulled out that Treasury Bills are exempt from state income taxes. So I am adding the amount of interest from TB to form Idaho 39R. My state amended return shows a refund for this exemption which I am entitled to. On my Federal amended form that was also generated, it says I now have a $200 dollar refund from my Federal return, which doesn't make sense to me, since nothing was changed on my Federal return. Basically, I ended up paying less state income tax because of Treasury Bill exemption. On Federal form 1040X under Adjusted Gross income, it shows the "Original Amount reported but this amount is $1000 more than I actually reported on my original Federal Tax return. I'm confused why Turbo Tax has changed this amount? Thanks

SteamTrain

Level 15

It's hard to know exactly where you originally entered your Treasury Bill interest.

IF....(big IF)...IF on your original tax return...if you properly entered the Treasury Bill interest in BOX 3 of a 1099-INT form (not in box 1), then that amount would automatically be subtracted from ID income somewhere on the ID tax forms.

Don't try to change it in the ID forms themselves....only make sure the $$ are entered only in the federal area ...again, box 3 of a 1099-INT. Changing it in the Federal area wouldn't change the federal taxes owed, since box 1 and box 3 $$ of the 1099-INT are taxed the same by the Feds,

And any $$ in box 3 of that 1099-INT Federal form, should automatically show up on line B.3. of the Idaho form 39R.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

rab77Author

Level 2

Thank you for the response, I appreciate it. I entered my Treasury Bill interest on my Federal Form on Schedule B Part I Interest. I can see that Turbo tax wouldn't have singled out this interest to put on the State form . You referred to "Box 1, 3, etc" and I'm assuming you meant Lines 1, 2, 3, etc. All under Part I on Schedule B. Line 3 says : Excludable interest on series EE and I U.S. savings bonds issued after 1989, Attach form 8815." Treasury Bill are not series EE or are they savings bonds. Possibly I missed a question that would have singled out the Treasury Bills where to be listed on the Federal Turbo Tax form that would have placed them on State Form 39 as a subtraction? What is the best way to proceed on an Amended Return. So, can I just amend my state return, since Federal tax will not change since the interest on TBs is already listed on Schedule B? Or is there something I'm still not understanding. Thanks again.

VolvoGirl

Level 15

He means Box 3 on the 1099 INT form, not Schedule B. Did you get an actual 1099 INT form? What box is the interest in? You can log in to your TreasuryDirect account and download the Form 1099-INT. TreasuryDirect does not mail these Forms 1099-INT, they only provide them by download.