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stherio1
New Member

Is the software going to be updated for New York residents to exclude interest from US Savings Bonds?

When entering the 1099-INT, it asks the question if the interest is non-taxable in your state.  New York is not on the list. 

https://tax.custhelp.com/app/answers/detail/a_id/721/~/is-the-interest-received-from-my-u.s.-governm...

5 Replies
SteamTrain
Level 15

Is the software going to be updated for New York residents to exclude interest from US Savings Bonds?

That question only refers to interest in box 1 of the 1099-INT.

 

Savings bond and US Treas interest will only show in box 3 of the 1099-INT, and those $$ are handled automatically.  Since no state taxes box 3 $$, the software doesn't need to ask about that (yes, the page where the Q is asked could make it clearer which box(s) are involved) )  You'll have to check your NY Forms to make sure it's actually removed.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
SteamTrain
Level 15

Is the software going to be updated for New York residents to exclude interest from US Savings Bonds?

Those $$ should show up as a line 28 subtraction on your 2019 NY form IT-201.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
stherio1
New Member

Is the software going to be updated for New York residents to exclude interest from US Savings Bonds?

Thanks!  But I guess what I'm saying is that it is exempt in NY. Why not include it in the pull down box?

SteamTrain
Level 15

Is the software going to be updated for New York residents to exclude interest from US Savings Bonds?

Like I said, 

 

That pull-down only refers to Box 1 interest, and has nothing to do with box 3 interest.   NY does not exclude box 1 interest, so NY is not on the list.

 

Box3 interest doesn't need a pull-down (and your Sav Bond interest must be shown in box 3...nowhere else).....anything entered in box 3 will be treated as state-exempt automatically in all income-taxing state forms..

 

You, or I, am missing the point somewhere?

 

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
R4C
Level 2

Is the software going to be updated for New York residents to exclude interest from US Savings Bonds?

How is the New York state adjustment shown on Turbo Tax if the U.S. savings bond interest recognized on the federal return is not determined by box 3 of form 1099-INT, but rather it is determined computationally? i.e. the annual accrual of savings bond interest based on an election several years prior? 

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