playforever
Returning Member

Accrued Market Discount is added as interest income, but it's not deducted from local tax

Last year (2023) I purchased some US treasury (UNITED STATES TREAS SER AT-2023 0.25000%, 91282CAW1) hold until its maturity. Fidelity reported the transaction in 1099-B*, and transaction has "Accrued Market Discount" basically is the difference between the purchase price vs final maturity price. 

 

 I imported data from Fidelity to TurboTax, TurboTax imported to transaction to "investment" section, and total gain/loss is 0 for this transaction.  When I printed out the 1040 form,  the "Accrued Market Discount" is added to interest income, that's fine, but the interest income from this is not deducted from my CA state tax. I do have other T-Bill interested income, the total of others got deducted from state tax. 

 

Any idea how to get this interest income deducted from state tax like other T-Bill.