It might depend on what state is involved:
...but if you removed the accrued interest you paid to the seller on the Federal tax forms...that should automatically be reflected in the state forms. i.e. There should be a subtraction somewhere on the state form for that that equals = (Interest received) minus (Accrued interest paid)
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A warning though.....IF the 1099-INT you are entering, also has any box1 or box 8 $$ along with your box 3 entry and accrued interest...you need to take the box 3, 12, $$ out of that 1099-INT, and put it on a separate 1099-INT before you report the accrued interest you paid the seller. If you don't, the accrued interest will be proportionally applied to the box 1,3,and 8 values.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
