topic virginia tax in State tax filing

virginia tax

glasgow144 — Sun, 25 Feb 2024 13:46:26 GMT

on va return turbo tax asks for us bond income not federally taxed and it wants to add this to my va income. my understanding us gov interest is generally federally taxed but not state taxed so instead of adding it to my adjusted federal gross income it should be subtracted for state taxes i cant find a place for us bond income included in my federal agi but not taxable for virginia

Re: virginia tax

AnnetteB6 — Sun, 25 Feb 2024 14:42:51 GMT

If you are referring to US savings bonds, the interest earned is taxable on the Federal return and is entered through Form 1099-INT in box 3.

Savings bond interest is not taxable on the Virginia tax return and it is automatically subtracted from the Federal Adjusted Gross Income (the starting point for the Virginia tax return) on line 7 of VA Form 760. Line 7 may also include other adjustments. You do not need to make any entries on your Virginia return to account for US savings bond interest being non-taxable.

The entry in the Virginia return asking for you to enter any bond income not Federally taxed would not apply to US savings bond income.

Re: virginia tax

Hal_Al — Sun, 25 Feb 2024 15:30:10 GMT

U.S. Treasury interest must be entered in box 3 at the 1099-INT screen. When it is entered there, TT will automatically make the deduction on the state return. There is no other way to make the adjustment.

Be sure that the US Treasury Interest in entered in box 3, at the 1099-INT screen. When you first see that screen, check the box "my 1099-Int has more than just a box 1", to get access to box 3.