Adjustment code D on Accrued market discount. re 1040 Sched B and NY State IT -201- A TurboTax Adjustment worksheet is triggered when you enter an adjustment code D and a negative value representing an Acc Mkt Disc. on a matured US Government Bonds/Notes on the 8449 based on a reported 1099-B column code 1f. You will see that it can relocate the adjustment value to your Sched B with the label "accrued marker discount" by using the lower section of the same adjustment worksheet page. However, adding the state code "NY" in the same lower section of the worksheet does not increase the US Govt Interest income Subtraction amount on IT-201 page 2. I think it has to be overridden manually with the full US Govt Interest income including the AMD adjustment. This does not invalidate the state e-filing. Make sure you can fully support the overridden amount as bona fide US Govt interest income. If you do not override you will lose the State Subtraction of the AMD. How are you adjusting your NY State Subtraction? Can anyone else chime in on howe to best process this NY State Subtraction?
