Agency bonds for state exemptoni

Forum|Forum|2 years ago
February 27, 2024
1 reply
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has anyone figured out how to enter deduction for agency bonds in states other than PA?

SteamTrain

Level 15

Depends on what state you are using...and you haven't said what state you are a resident of.

For NC, it requires the Desktop software, and entering the US Agency $$ value in Forms Mode on one of the NC worksheets.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

jinparkgAuthor

Level 2

For Virginia, do you know how to input? I have FHLB bonds and can't figure out how to input because it should not be taxed at state level.

SteamTrain

Level 15

OK @DJS ..............I think you work with the VA forms.

DO you know if the VA Q&A section has an area to "adjust" (reduce) the VA taxable income for $$ received from US Agencies?

Many states allow taxpayers to exclude dividends/inters from US Agencies (TVA, FHLB etc) that show up as income in box 1 (not box 3) of the 1099-INT form. In order to remove it, some state's software has an area to "Adjust" the state income by entering that US Agency bond interest...... Does the VA software have a usable area in their Q&A?

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*