When you go through step-by-step - under "Investment adjustments" section " Exempt income from US government bonds" and input the accrued market discount in "US Government Interest" the amount shows up on IT-201 line 31. If you look at forms this is listed on IT-225 as code S-121 - "Certain investments income of US government agencies. I do not like that it is on line 31 and not on line 28 (where it belongs) but I have no other choice right now. Are you certain accrued market discount from US treasuries held to maturity are excluded from income in NY State? Maybe given the abiguity TT does not want to make it flow? This will flag it and really be an issue if not an allowed add back!
