Maine State Taxes - Schedule 1S

Forum|Forum|6 months ago
February 17, 2026
1 reply
118 views

Turbo Tax will not allow me to manually adjust Maine Schedule 1S to include accrued market discount for treasury notes (which is treated as interest on US obligations and should not be subject to state taxes). Any suggestions?

AmyC

Level 15

Yes. Follow these steps:

Open to the federal income section to solve your state problem.

If you have a1099-B:

locate your Accrued Market Discount and uncheck the box and let's enter it another way.
Before you leave that section, adjust the cost basis up by the AMD to avoid double taxation.

Create or edit for a 1099-INT:

Select your 1099-INT and step through the entries.
- If you are creating the form, enter AMD and broker for the name. Enter the AMD in box 3.
After entering the form, see Tell us if any of these uncommon situations apply
select I need to adjust the interest reported on my form
Enter you accrued interest paid as a positive number
In the dropdown menu, select My accrued interest is included in this Form 1099-INT

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