Last year my Savings Bod interest was shown as not taxable on my New Hampshire Tax Return. This year it is listed as being taxable. Is this an error?

[IreneS · Accepted solution]

No.  You have to indicate when entering the information in your federal return that your state does not tax savings bond interest.  To do this:

1. Click Federal Taxes > Wages & Income.
2. On the screen, Here's the interest we have so far, click Edit next to your bond entry.
3. On the 10099-INT entry screen, click Continue.
4. On the screen, Tell us if any of these uncommon situations apply, mark the box My state doesn't tax all of this interest.
5. Select New Hampshire in the box and click Continue.

The savings bond interest will NOT appear on the NH DP-10 as taxable income.