Minnesota Treasury Bill tax

[mikult1]

I have US Treasury Bill interest that I included in my federal return. I understand that it is not taxable in the state of Minnesota. However, I cannot find where it is deducted from my state return.

[DMarkM1]

Yes MN does have a subtraction for interest on US Treasury Obligations.  In the federal interview verify your entries that would indicate US Treasury interest.  

• Check form 1099-Int box 3
• Part of dividends entered form a form 1099-DIV identified as US Treasury in the follow on page for that topic
• Form 1099-OID box 8 entry
• K-1 entries, identifying interest in box 5 as from US obligations

The amounts from those entries will flow to the MN schedule M1M line 14.  This carries down to line 35 on the M1M.  That total subtraction number then goes to line 7 on the MN form M1.  

In a "MN tax summary" it would be part of the "Subtractions" number.

You can use the "Forms Mode" in TurboTax desktop products to see the applicable forms.  

For online products you will need to print the forms (see print steps below) in order to view them.  You can, however, see a "MN Tax Summary" using the steps below.

To View a state "Tax Summary"

1. Select "Tax Tools" in the left hand menu
2. Select "Tools"
3. Select "View Tax Summary"
4. Select "Preview My 1040" in the left hand menu

5. Select "MN Tax Summary"

To View/Print your online return:

1. Select "Tax Tools" in the left hand menu
2. Select "Print Center"

[VolvoGirl]

Treasury and Saving bond interest is not taxed on most state returns.  Turbo Tax will automatically exclude it on the state return.  Enter it in box 3, not box 1.  You have to check the little box under box 1 that says my form has more boxes for it to open up.