Talked with turbo tax yesterday. Took them quite a while to figure it out but they got me a answer. Virginia has an age related deduction based on federal agi. The deduction is reduced $1 for every $1 over a federal agi of $75000. So while they weren’t taxing the t- bill interest, my VA refund was reduced cause the interest raised my federal agi above $75000. Thanks all for trying to help.
