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Returning Member
posted Jul 19, 2022 11:05:23 AM

Can I amend an amended State return that I filed and paid taxes on interest income of US Savings Bonds?

I think I should not have sent an amended return to the state.  Only to the Federal.

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3 Replies
Level 15
Jul 19, 2022 11:24:33 AM

not quite sure what you did. interest from EE U.S. savings bonds is taxed at the federal level but not at the state or local levels for income tax purposes.

it seems you filed amended returns correctly by filing only for the state.

However, if you used the bonds to pay qualified education expenses the interest may also be exempt for federal purposes. see this link

https://budgeting.thenest.com/redeem-savings-bonds-paying-taxes-33036.html 

 

Returning Member
Jul 19, 2022 11:39:03 AM

Thank you for your quick response.  I received a K-1 for Interest Income on EE & I U.S. savings bonds after I filed my 2021 Fed and State returns.  I then filed and paid additional taxes on amended returns (both Fed & State) for the K-1 Income.  I didn't realize that Interest on U.S. savings bonds were exempt on State Income Tax returns. Should I file another amended to the State to request a refund?

Level 15
Jul 19, 2022 12:20:50 PM

Yes ... you should  amend any  return that has an error on it.