When a 1099-INT includes interest income (Box 1) and interest on US Savings Bonds & Treasury obiligations (Box 3), the total of both boxes flows to NJ line 16b (tax exempt interest). There is no taxable interest income shown.
If the interest is entered as if received on two separate 1099-INTs (one for Box 1 income and one for Box 3 income), then the interest flows correctly to NJ lines 16 a and 16b.
Please advise.
