State tax filing

@mgfrobozz 

That "Uncommon Situations" selection, after the 1099-INT main page?

That "Our state...." selection is primarily for those few states who also exempt all, or a part of box 1 interest that came from those states', in-state Credit Unions or certain in-state banks.  If one enters anything there, it is only supposed to affect that particular state's software entries, and not any other state's forms.

The software TTX needs is to add another menu line, indicating something like:

" A portion of the $$ in box 1 represent dividends or interest received from US Agency bonds"

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The issue I see, is that I don't know whether all states exempt the same list of US Agency bonds.  TVA bonds is common, but there is an extended list of so-called "Agencies" that may, or may not be used, by all states.

For instance, my NC-exempt list includes:

1. Guam, Puerto Rico, or Virgin Islands (these would actually be in box 8 of the 1099-INT)
2. A Federal Land Bank
3. A Federal Home Loan Bank
4. A Farm Credit Bank
5. Export-Import Bank of the United States
6. Tennessee Valley Authority
7. Banks for Cooperatives
8. Production Credit Associations
9. Commodity Credit Corporation
10. Federal Deposit Insurance Corporation
11. Federal Financing Bank
12. General Insurance Fund
13. United State Post Office
14. Resolution Funding Corporation
15. Financing Corporation (chartered by the Federal Housing Finance Agency)

Most of which (except #1), would be interest included in box 1 of a 1099-INT when someone owns an individual bond from them.   Do all states, with an income tax, exempt the same list?    Don't know. 

(I think that some in that list may not really be US "Agencies", but NC exempts those $$)

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But NC also includes the following statement :

"However, interest paid on obligations where the United States is merely an insurer or guarantor is not deductable from federal taxable income or adjusted gross income, as appropriate. Examples include Federal Home Loan Mortgage Corporation ("Freddie Mac"), Federal National Mortgage Association ("Fannie Mae"), and the Government National Mortgage Association ("Ginnie Mae")."

Interest Income from U.S. Obligations | NCDOR

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As far as box 3 on the 1099-INT is concerned, any $$ entered there are automatically deducted from state income by the software, for any state.  The menu item you are [pointing to on follow-up page, after the main form, isn't referring to box 3 $$ at all.