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deduct from federal agency bonds interest from state taxable income
I own several U.S. government backed federal agency bonds that are state tax-exempt (Federal Home Loan Bank, Fed. Farm Credit Bank). Interest from these is included in my brokerage 1099-INT (Box 1).
I cannot find a way in TT to designate that this interest is state tax-exempt in Pennsylvania. In PA Interest Income Worksheet, there is a column "US Govt Interest". If I put the interest earned from the agency bond, the amount is *not* deducted from the total amount from Box 1 of my 1099-INT. What form should I use to be able to properly make the correct adjustment?
Please help!
‎February 17, 2023
7:56 AM