Yes, if this discount is related to US treasury interest, it is non-taxable in NJ. Here is how to report.
- Open or continue your return.
- Go to 1099-INT interest income. Click on this, it should take you to the section of your return
- Select Yes on the screen Did you receive any investment income? then Continue.
- If you see the screen Your investments & savings or Here's your 1099-INT info, select Add investments or Add another 1099-INT, then Continue.
- On the next screen, select how you want to enter your Form 1099-INT- say you will type it in.
- When you enter the discount, enter this in Box 3.
- After entering this, there will be a section where you will select that NJ does not tax this interest. See screenshot below.
- In reviewing your NJ state return, the amount of the tax exempt interest will appear on the Int/Div WKS in line 2. you do not need to make any additional adjustments.
@apergoli
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
