Though #1...ee bond interest should be reported in box 3 of the 1099-INT...and then it should be automatically excluded in the state tax return....if the software is working right.
Though...#2... many states use the full Federal AGI (including box 3 $$) as the starting point, and then subtract the box 3 $$ on a later line....so some people miss that and are mistaken about it not being excluded in the state return. (Not sure what NY does)
Though #3.... this assumes that the user did not create their own 1099-INT and put it in box 1.
Those using Treasury-Direct accounts don't get a 1099-INT in the mail...they have to download it from their online Treas-Direct account. Those who redeem paper EE-Bonds at the bank do get a paper 1099-INT (I think).
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
