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@JRJ9 

..... $60  of accrued interest was assigned to the box 1 $$, so it reduced the amount deducted from box 3 by $60.  So the $ transferred to VA for subtraction there, was increased by $60.  (and if you hadn't noticed yet...it also improperly reduced your Federal interest income by $60)

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Like I indicated in one of my posts above

.....Put box 3 $$ (&box 12 if any) into it's own 1099-INT and then declare the accrued interest on that 1099-INT

...and the box 1 $$ in it's own 1099-INT

 

When box 1 and 3 $$ are on the same 1099-INT, the accrued interest is applied proportionally to any existing box 1, 3, & 8 $$....and the proportionate amount applied to box 1 was right at $60.  

 

Yoru accrued interest that you entered the way you did...did not indicate which box $$ it was supposed to be applied to...that's why you have to break out the $$ into their own 1099-INT.  Some day, TTX might create multiple lines for the accrued interest, so they can be applied properly to the right box...but it's not there yet

 

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

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