Treasury Bill interest

Lexi7 — Wed, 11 Feb 2026 03:37:47 GMT

I have entered Treasury Bill interest on the Federal form 1040. Our state (Kentucky) does not tax interest from the Treasury Bills. However, the amount entered as interest on my federal form 1040 has transferred to my state return, counting as taxable income. How can I navigate out of this system glitch.

Re: Treasury Bill interest

VolvoGirl — Tue, 13 Feb 2024 18:42:39 GMT

You need to enter the interest in Box 3 on the 1099INT not box 1. That makes it not taxable for state. You have to check the little box below that says…My form has info in more than just box 1.

topic Treasury Bill interest in State tax filing

Treasury Bill interest

Re: Treasury Bill interest