@Yatnola
You are supposed to be putting your Savings bond interest into box 3 of a 1099-INT.
When entered there, it is included in the Federally-taxed interest on the form 1040, but it should automatically be deducted from VA income. (If the software is working right....line 4 of the VA Schedule ADJ).
Savings bond interest does not go in box 1...nor in box 8 of a 1099-INT form.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
