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State tax filing
If you are referring to US savings bonds, the interest earned is taxable on the Federal return and is entered through Form 1099-INT in box 3.
Savings bond interest is not taxable on the Virginia tax return and it is automatically subtracted from the Federal Adjusted Gross Income (the starting point for the Virginia tax return) on line 7 of VA Form 760. Line 7 may also include other adjustments. You do not need to make any entries on your Virginia return to account for US savings bond interest being non-taxable.
The entry in the Virginia return asking for you to enter any bond income not Federally taxed would not apply to US savings bond income.
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‎February 25, 2024
6:42 AM