In the federal interview after entering the form 1099-INT information there is a page titled, "Tell us if any of these uncommon situations apply". You have selected the state non-taxable box which makes all the interest on that 1099 not taxable to NH.
In the NH interview you are asked which of the below reasons is that 1099 income non-taxable.
If none of the 1099 interest meets the criteria below, then you should "Uncheck" the box for "Our state doesn't tax all of this interest" in the federal interview.
If some of the interest does meet one or more criteria make two separate 1099 Int entries. One for the taxable portion and one for the non-taxable portion and check the box for the non-taxable portion only.
- Direct US government obligations
- New Hampshire municipal bond
- Long or short term capital gains included in Line 3
- Individual retirement account/Keogh plans/other exempt retirement plans
- Liquidating distributions
- 100% of K-1 interest or dividend income from partnership/fiduciary with non-transferable shares which is subject to I&D tax
- A portion of interest or dividend income from a partnership/fiduciary with non-transferable shares which is not subject to I&D tax
- Allocation to non-New Hampshire residents or portion of estate distributed to non-taxable persons or organizations
- Specifically exempted Puerto Rico, Guam and Virgin Island bonds
- Distributive share of the entity's interest or dividend income indicated on Schedule K-1 and included in the partner, beneficiary or shareholders federal income tax return
- Return of capital
- Non-taxable portion of distribution from a "civil law foundation" pursuant to RSA 564-E
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
