Two factors for why this confused me and probably others. The form the treasury sent out to me for savings bond interest does not have the typical look of a 1099-INT form. It only has three columns: recipient, then 3-interest on U.S. Savings Bonds and Treas. obligations, then 4-Federal income tax withheld. It does not have the more normal set of boxes for '1' '2' '5' etc. From a TT perspective... On the TT Interest page, you have to hit " I 'll type it in myself" . You are then presented a form to enter interest info. At the bottom of the TT form is a note: "My form has info in more than just box 1 (this is uncommon)." What TT could do to help prevent the confusion would be to expound on the note. Instead of staying (this is uncommon), say something like: further box entry is needed for investments such as Savings Bonds, U.S. Treasuries, etc. I think such an enhanced note will become more important going forward. Especially considering the popularity of I-savings Bonds and how U.S. treasury bills/notes are finally yielding worthwhile interest rates. Anyway, Hal_Al did a nice job describing how to resolve state tax exclusion of Savings Bonds within normal TT screens. but I suggest TT's note that such interest is uncommon should be enhanced to ensure entry of Treasury interest thru normal TT panels is more obvious. Thanks!
