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

[stherio1]

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...

[SteamTrain]

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.

[SteamTrain]

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

[stherio1]

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]

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?

[R4C]

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?