They are transferred to NC, based upon your entries in the Federal section.
Those are entered in two places.
1) Box 3 on a 1099-INT form....but those would go in the properly right away, as long as they were on a 1099-INT in the proper box.
_____________________________
2) The ones that can cause some issues, are those that are issued as part of Mutual Fund distributions. Those are a part of your entries on a 1099-DIV form. US Govt interest from Mutual Funds are entered in box 1a on the 1099-DIV, however, box 1a also includes stock dividends, Corporate bond interest, and short-term gain distributions from Mutual funds. SO you have to use other informational forms from the Mutual funds (usually created at year end) to calculate what sub-part of the box 1a $$ came from US Govt Bonds. IF you can't calculate the $$amount, or don't want to calculate it, then you don't claim them at all and move on.
3) IF you do calculate what sub-part of box 1a came from US Govt bonds, you edit that 1099-DIV form, and enter the data exactly as shown on the real 1099-DIV.....BUT...a) click the box to show all the other boxes on the form (if not already showing), and go to the bottom and Continue to the next page. b) Check the box that indicates that "A portion of these are US Govt Interest".....and continue thru the next page(s)....on one of them c) you will be asked to enter the US Govt Interest from your calculations .... and move on form there to complete any other questions asked...then the US govt Interest should be noted as a subtraction on the NC forms.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
