topic U.S. Government Obligations Income from IRA distribution in State tax filing

U.S. Government Obligations Income from IRA distribution

JoGia — Mon, 23 Feb 2026 13:27:11 GMT

How do I enter U.S. Government Obligations Income from an IRA distribution (1099-R)? The turbotax easy step form does not offer a place to input this information and I am unable to enter it directly on the forms. I would like to deduct this interest income for my state taxes.

Re: U.S. Government Obligations Income from IRA distribution

Bsch4477 — Sat, 04 Feb 2023 00:59:15 GMT

You don’t deduct those obligations. All distributions from your IRA are taxed at your marginal tax rate no matter what the asset sold was invested in. That’s why tax exempt income assets are generally not held in a retirement account.

Re: U.S. Government Obligations Income from IRA distribution

Mike9241 — Sat, 04 Feb 2023 02:00:39 GMT

even distribution from an IRA or other retirement account of interest from a municipal bond is taxable.

Re: U.S. Government Obligations Income from IRA distribution

JoGia — Sat, 04 Feb 2023 21:01:54 GMT

Thanks to everyone for your help. I learned something new.

Re: U.S. Government Obligations Income from IRA distribution

lwylie — Thu, 16 Mar 2023 02:46:06 GMT

What about for state taxes? For my state of Oregon, TurboTax asks if some of the money in my IRA was invested in US government bonds and notes. TT then says "You can subtract the part of your IRA ... distributions that corresponds to tax-exempt U.S. government interest received."

Re: U.S. Government Obligations Income from IRA distribution

ErnieS0 — Thu, 16 Mar 2023 13:24:07 GMT

Yes. Oregon does allow a subtraction of U.S. government interest included in IRA or Keogh distributions.

See Publication OR-PIT-VET.