Interest on Savings Bonds

[Dana-Bill]

I see no field to modify Federal AGI on the WV state return since the interest on EE bonds are not subject to state income tax.  Tell me where to find this.

[Hal_Al]

In the federal section, enter savings bond interest at the 1099-INT screen (even if you didn't actually get a 1099-INT) in box 3.  Entering it there causes TurboTax to exclude or delete it from the state return.

[kebaw23]

I went to the section in the federal taxes where the interest is put in for  ee bonds but it is still charging me taxes for North Carolina in my state taxes.  It states that there should be no state taxes on the interes.

[RaifH]

You are correct, there should be no state tax on the interest generated from US savings bonds. Verify you entered it as @Hal_Al recommended, using Box 3 of the 1099-INT:

1. Go to Federal > Wages & Income > Interest and Dividends > Interest on 1099-INT
2. Whether you import or enter it manually, make sure the interest from the EE bonds is entered in Box 3, not Box 1

If you look in your tax summary, you should see an NC deduction for the amount of your interest:

1. Open or continue your return.
2. Select Tax Tools in the left menu (if you don't see this, select the menu icon in the upper-left corner).
3. With the Tax Tools menu open, you can then view your 1040 form: Select Tools.
4. Select View Tax Summary in the pop-up, and NC Tax Summary.
5. It starts with Federal adjusted gross income and you should see the amount of your EE bond interest as a North Carolina deduction. 

[Hal_Al]

At the entry screen titled "Lets get your 1099-INT or brokerage statement details", there will only be one box ("Box 1 - interest income").

You need to check the box "My form has info in more than just box 1 (this is uncommon)".  That gives you more boxes. Be sure the Sav bond interest is entered in box 3.