I work in NY and live in NJ, and I have been using Turbo Tax for few years now.
Just finished my tax returns, but kind of confused why TTax subtracted Interest on US Gov notes/bond amount from NY state column on IT-203 tax form of NYState.
TTax asked how much of total interest income from Federal tax is NY Source income, and I replied -0- (zero). So on IT-203 NYState tax form, TTax reported full interest as taxable income on line 2 under Federal amount column and none (zero) on NY State amount column. But then, US Gov notes/bond interest is substracted from both Federal and NYS amount column on line 27 from both column adjusted gross income line 19.
NYS tax guide ono page 23 of https://www.tax.ny.gov/pdf/2022/printable-pdfs/inc/it203i-2022.pdf , reads:
Line 27: Interest income on U.S. government bonds
Did you include interest income from U.S. government bonds or other U.S. government obligations on lines 2, 6, or 11?
• If No, go to line 28.
• If Yes, enter in the Federal amount column and, if applicable, the New York State amount column the amount of interest
income you earned from bonds or other obligations of the U.S. government.
I hope any TTax software developer/expert can explain me why US Gov bond/notes interest income is substracted from New York amount column when it is not included as taxable income under line 2? It there a software glitch?
