Oregon subtracts Fed Treasury and Savings Bond interest from state income (ASC code 315). The amount autofills from the 1099INT. How do I change this (wrong) number?

[joyndan12]

Accrued Market Discount from the 1099-B should also be subtracted from Oregon income, but TurboTax does not pick this up automatically and does not seem to allow me to force a change to the code 315 subtraction.

[JohnW152]

Follow these steps in TurboTax Online:

1. Select Tax Home in the left pane
2. On the Hi, let's keep working on your taxes! screen, select the dropdown to the right of Income & Expenses or Wages & Income
3. Select Start, Pick up where you left off or Review/Edit, as appropriate
4. Scroll down and select Add/Edit next to Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto)
5. Select the dropdown to the right of the appropriate Interest item, and select Review or Edit
6. If everything is correct on the Now, let's review your 1099-INT screen, select Continue
7. On the  Do any of these uncommon situations apply? screen, select the box next to I need to adjust the interest reported on my form, then select Continue
8. On the Tell us about your interest adjustment screen, enter your adjustment amount, and select Other reasons in the Reason for adjustment dropdown
9. Continue through the screens, importing or entering any relevant information

You'll be able to see the adjustment in you state tax summary in TurboTax Online:

1. Select Tax Home in the left pane
2. Select the dropdown for any category in the middle of the page, then select Review/Edit
3. In the left pane, select the dropdown to the right of Tax Tools
   • If you don't see Tax Tools in the left pane, close any dropdowns in the pane -- for example, next to Federal or State Taxes 
4. Select Tools
5. In Tools Center, select View Tax Summary
6. In the left pane, you should see [Your State] Tax Summary.  Select it

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[joyndan12]

Thank you for the reply, JohnW.  However, it’s not the 1099INT causing the problem, but rather the market discount reported on 1099B.  There is no screen associated with the 1099B to adjust state taxes for “unusual situations”.  The Federal return correctly moves the market discount to be reported as taxable interest, but the Oregon state form only deducts the coupon payments (it should be also deducting the market discount).