topic Re: 1099-INT Box 3 in Get your taxes done using TurboTax

1099-INT Box 3

delta_hotel — Wed, 11 Feb 2026 03:36:41 GMT

Hello Experts,

Confused why my federal tax refund goes up when I enter my treasury bill interest in box 3 verses box 1 for 1099-INT. The amount is the same, but the tax liability is higher when entering in box 1 than in box 3. I know interest from treasury bills is exempt from state and local taxes, but I thought it was treated as regular interest for Federal tax purposes. Again, same amount in box 1 produces a considerably different tax liability than if I put this amount in box 3 and blank out box 1.

Any ideas why this is the case?

Thanks for your input in advanced.

Dave

Re: 1099-INT Box 3

MonikaK1 — Sun, 18 Feb 2024 00:17:15 GMT

Your "refund meter" may not be updating right away. This could be an Internet connectivity issue. Also, be sure you are looking at the Federal meter.

I just tried this with a test Form 1099-INT. The Federal tax went up by the same amount whether I entered the income in Box 1 or in Box 3.

Since the refund meter may not always be reliable, you can preview your return before filing to find out how your taxes were calculated. See here for details.

Re: 1099-INT Box 3

mesquitebean — Sun, 18 Feb 2024 00:32:21 GMT

User appears to be using desktop Home and Biz software, so it doesn't need Internet during preparation other than for product updates.