(for a 1099-INT)
@Wolfpv
Yeah...but the IRS would likely need to create a new box for those "Agency" $$ since box 13 only refers to box 12 $$, and 13 cannot be greater than the box 12 $$.
I would think that most states exempt "Agency" $$, and if they do, then perhaps those agency $$ should be directed to box 3. But if some states do not exempt those Agency $$, then putting them in box 3 would create a bunch of unintended consequences for the states involved.
___________
CA software does have an area in the CA interview to remove the Agency $$ that may be included in box 1 of a 1099-INT:
See the last post from LivinTheOC below:
Re: How do I remove state exempt interest from Treasuries and Agency bonds on my CA state return? (i...
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
