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Question about Savings Bond interest exempt on North Carolina state taxes

I'm filling out my state of North Carolina taxes and have some Series I savings bond interest.  I know this interest is not taxable at the state level.  But where do I include this exempt interest on my North Carolina state tax return.  I do not see a line for it.

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2 Replies
Hal_Al
Level 15

Question about Savings Bond interest exempt on North Carolina state taxes

If you enter the savings bond interest, in the federal section, in box 3 of a form 1099-INT, the interest will automatically be excluded from the state return (in every state).

 

For NC, the deduction is shown on line 8 of Schedule S and is  included on line 9 of form D 400.

AnnetteB6
Employee Tax Expert

Question about Savings Bond interest exempt on North Carolina state taxes

TurboTax will automatically exclude the savings bond interest from your North Carolina tax return if it is entered in your Federal return in box 3 of Form 1099-INT, as stated by Hal_Al.

 

On the North Carolina tax return, the adjustment for the savings bond interest is included on Form D-400 line 9, Deductions from Federal Adjusted Gross Income.  

 

@scsiguru 

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