Line f US treasury bill interest not done right

Here is another problem you have with Turbotax: Treasury bills (not bonds, just one year bills) are issued as zero coupon instruments and reported on 1099B with a line f deduction for interest. This carries over fine on the federal return and goes to interest on Schedule B, but Turbotax does not see it as US interest that is exempt from state tax and does not carry it over to the state return as a deduct to taxable income. You need to add a choice when inputting 1099B line f asking if this is UST interest and make it carry over to state returns.

Example: you might buy a one year tBill with face of $100K for about $97K. When it matures it shows up on 1099B as a sale at $100K with a basis of $97K for a $3K gain, but this is corrected by the line F entry of $3K, making the gain zero and putting the $3K into interest. But Turbotax does not see it as federal UST interest.

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