Residents of Alabama can open a regular savings or money market account and deem it a Catastrophe Savings Account. Such a designation means that the contributed money and its earnings must go to cover repair costs and losses from damage to the account owner's principal residence.
The interest earned on the CSA is tax-free as long as the account owner doesn't exceed the maximum contribution levels. Residents can even claim a personal income tax deduction for CSA contributions, subject to a cap based on their homeowner's hazard policy's deductible amount.
I suspect that, when you entered a 1099-INT, it asked you if this was a CSA, and you accidentally checked Yes. So go back and check.
