My understanding is that NJ does not allow a deduction for amortized bond premium from interest income even though it is allowed on the federal side. This is based on the NJ Gross Income Statute using the term "interest" which is taxable instead of using the term "net interest". Following that logic, accrued interest paid on purchase a bond would also be disallowed as a subtraction.
Can anyone confirm?
How would you add these items back in the Turbotax NJ module?
