Is interest from U.S. Govt obligations subtracted from NY State income?

[IreneS]

No - According to the Internal Revenue Service, any interest earned on a U.S. Treasury bill "is exempt from all state and local income taxes."

If included on your federal return, the interest will be subtracted out of your NYS income on line 28 of the IT-201.

[gj16]

I have interest income on US government bonds that I need to subtract for NYS purposes. It needs to go on line 28 of Form IT 201. I have not found anywhere in the easy step questions that allows me to input this amount and have it wind up on line 28. Under the "changes to federal income/investment adjustments section" the heading of "investment income from US government agencies" does not wind up on line 28 but instead line 31 as other. Do I need to force input this NY subtraction amount for line 28?

[VolvoGirl]

What did you enter them from?  A 1099INT?  If they are like savings bonds the interest goes in box 3 not box 1.  Box 3 will be automatically subtracted on the state return.

[gj16]

Thanks.  They are actually dividends from US treasury funds and ETFs that are taxable at the federal level not the state level so they are not separated out on the 1099DIV. I need to back them out on the NY subtraction but the TT interview doesn't ask this specifically. 

[SteamTrain]

@gj16 

OK....For 1099-DIV forms.....You need to edit any 1099-DIV that has US Govt interest included in box 1a in it...back in the Federal section.

On a page after the main form, there is a page with checkboxes....and you need to check a box:

"A portion of these dividends is US Government interest."

Then on a later page you will be able to enter those $$.

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BUT be careful, NY, CT & CA only allow you to enter $$ there for a particular fund, if the Fund distributing those $$ held at least 50% of its holdings in US Govt bonds.  You need additional information from each fund to know whether it can be used or not for that fund's distributions.

I know Fidelity has a big-long PDF listing for it's mutual funds, marking which funds held the 50% minimum.