I own US Treasury Bonds and various state municipal bonds (directly, not through a mutual fund)
I have a 1099INT imported to TurboTax from Fidelity that shows all of the transactions.
Boxes 1 (interest income), 3 (Interest on US Treasury Bonds), and 8 (Tax exempt interest) are filled in.
Question 1. For the Federal Return, does TT automatically deduct the Municipal Bond interest from Federal taxable income since it is not supposed to be taxed, or do I need to manually do something here.
Question 2. For the State Return (MD), does TT automatically deduct the US Treasury interest income as it is not taxed by state or local government, or do I need to manually do something here.
Question 3. For the State Return (MD) Municipal bond interest, do I just need to document the MD bond interest so in can be deducted from taxable interest income, or do I need to input all states?
Thank you. Rich
