Is turbox premier mistaken on treasury t-bill tax for California?

[blahblah_gc]

Hi 

My understanding is treasury t-bill purchased from platforms such as Schwab is NOT taxable in California. But

Turbotax premier added all t-bill income as taxable in California. Is Turbotax wrong? I have already filed the state tax, what should I do?

Thanks

[surgerygalore]

Hello

Interest from Treasury Notes is subject to Federal taxes but is exempt from State taxes, independently of where you bought the note, in your case a T-bill, or from which state you reside.  You will have to file an amended CA return.  Good luck !

[blahblah_gc]

Thanks for the response, isn't turbotax supposed to take care of this? 

[blahblah_gc]

False alarm, turbotax indeed took care of this.  Tbill is not taxed in CA filing.

[SteamTrain]

Yeah, sometimes folks who prepare their own 1099-INT forms, they sometimes accidentally put  their T-bill interest received in box 1 instead of box 3.    As long as box 3 is used for those $$, they "should" be properly handled in anyone's state forms.   

Apparently yours was properly entered as box 3 $$.

Really glad to hear that you found that those $$ were removed form CA income.   Sometimes looking thru the actual forms will answer questions you never thought to ask.