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State tax filing
Since you are also in a state (MD) that doesn't tax interest or gains on Treasury bonds, you can exclude interest and gains from Form 1099-B from Treasury securities in the for your state without removing the form from your Federal return.
When you complete the Federal interview in TurboTax for Treasury interest, you are asked a series of questions about any items that need to be treated differently or allocated among different states, (e.g., "My state (ME, MD, MA, NH, NJ, or WV) doesn't tax all of this interest"; answer the questions. You shouldn't have to do anything else in the state return to exclude the items unless you need to allocate the subtraction amount among different states.
If, when you have prepared the Maryland return, you see an item being treated as taxable that should be tax-exempt, you can still make an adjustment on the state return under items treated differently by Maryland.
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