State tax filing

See this 1996 memo from NYS.   TurboTax doesn't know the make-up of your interest income, so we ask.    The taxation of interest income for New York State and New York City personal income tax purposes generally conforms to the federal income tax treatment.

However, there are exceptions in the case of certain bonds and obligations issued by the United States government, its possessions and agencies, and by states other than New York and their political subdivisions and agencies. The interest income on these bonds and obligations may be taxable for federal purposes but not for New York purposes or vice-versa.