topic Delaware tax in State tax filing

Delaware tax

joeruthmc — Sat, 30 Mar 2024 17:24:04 GMT

I live in Delaware and according to the income tax instructions, Delaware does not tax interest from US Savings Bonds. I brought this to Turbo Tax's attention via telephone--the only way to communicate with them, as there's no email option--a few weeks ago. They have not corrected their filing info, so you have to know that Delaware does not tax US savings bond interest and subtract the interest manually. This is the last year I will use Turbo Tax.

Re: Delaware tax

VolvoGirl — Sat, 30 Mar 2024 17:28:52 GMT

You only have to enter it from the 1099 INT box 3. Box 3 tells it to subtract it from state. You don't need to adjust state. There should be an adjustment page on state that subtracts it out if the federal AGI.

Re: Delaware tax

VolvoGirl — Sat, 30 Mar 2024 17:35:50 GMT

I looked up Delaware tax form. Bond interest should on line 5. It's not there?

Re: Delaware tax

joeruthmc — Sun, 31 Mar 2024 13:32:34 GMT

I had to put it on line 5 manually. On the Turbo Tax input for the interest from US Treasury, it has a question that you can say my state does not tax this interest. But the drop down menu where you pick which state does not have Delaware as a choice, so the program does not put that interest on line 5 of the Delaware form, where it is subtracted from the Delaware taxable income. I told Turbo Tax about this, offered to email them the Delaware instructions but was told there was no way to do that. And the drop down menu has not been corrected.

Re: Delaware tax

Hal_Al — Sun, 31 Mar 2024 14:18:45 GMT

U.S. Treasury interest must be entered in box 3 at the 1099-INT screen, in the federal section of the program. 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.

If you have a 1099-DIV, from a mutual fund, and a portion of the dividends are from U.S. securities; after entering your 1099-DIV, you will reach a screen: "Tell us if any of these uncommon situations apply to you". Check the box "A portion of these dividends is U.S. Government interest".