topic WHY is my interest from Savings Bonds in my Massachusetts state return? I thought that interest was exempt from state tax? in State tax filing

WHY is my interest from Savings Bonds in my Massachusetts state return? I thought that interest was exempt from state tax?

smythy33 — Mon, 09 Mar 2026 09:13:05 GMT

Re: WHY is my interest from Savings Bonds in my Massachusetts state return? I thought that interest was exempt from state tax?

Mike9241 — Thu, 03 Mar 2022 19:34:04 GMT

on what line of the 1099-INT was the amount entered? should be line 3 to be exempt. not all "US" interest is exempt from state taxes, especially certain interest paid by certain US government agencies

Re: WHY is my interest from Savings Bonds in my Massachusetts state return? I thought that intere...

JohnB5677 — Thu, 03 Mar 2022 19:48:20 GMT

You are correct, US savings bonds are tax-free on all state returns. I suggest you return to the input screen for the bonds and double-check them.

Be sure to enter savings bond interest in box #3 Saving Bonds and treasury interest.
If this does not resolve the issue go back through the Massachusetts state interview. Check in the Adjustments section.