@vickap
two (or more) possibilities.
1) Do you have $$ in box 12 ($188). That changes the effective Federally taxable amount, and reduces the amount to be deducted from NC taxable income.
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2) IF not that, and if you bought Muni bonds during the year, and you paid the seller accrued interest on those Muni bonds.....then...that accrued interest deduction isn't handled properly and could affect both the box 1 and box 3 values on the 1099-INT too. IF you did buy Muni's with accrued interest you paid out when buying them, then it's best to take the box 8, and box 13 values out of that 1099-INT, and create a new 1099-INT from the same source...but reporting the box 8, 13, and accrued interest paid to the sellers...on it's own separate 1099-INT.
3&4) Same thing for accrued interest paid out to the seller, if you bought Corporate, or Treasury bonds ...break out the box 1&11 $$, or box 3&12 $$ into their own 1099-INT before indicating the amount of accrued interest paid out at purchase for those particular bonds.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
