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Get your taxes done using TurboTax
It depends. If you bought US Treasury notes at a discount in a secondary market, then the interest would not be reduced on your state return. If you purchased the bonds from the US government then you can deduct the interest on your state return.
Accrued market discount from a US Treasury obligation is not deductible on your state return if the effective paid interest is coming from a private party, not the US treasury. If you buy the bond from the government, you can subtract the interest. If you buy the bond from a 3rd party, the interest is not deductible.
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March 3, 2025
11:59 AM