Accrued Market Discount

[user17568281569]

They accrued market discount for my treasury bill transactions appears on schedule B. However, this does not carry forward to the adjustments schedule on the Virginia tax return. How do I enter it so that it reduces my Virginia taxable income?

[baldietax]

I use a manual subtraction from VA income, on page "Here's the income that Virginia handles differently" under Misc / Other Subtractions from Federal Income

(Do not use Investments / Exempt US Bond Income that is an addition to income to bonds taxable in VA that are exempt Federally).

[user17568281569]

Thank you 

[user17568281569]

I made the adjustment and it shows on schedule ADJ/CG on line 6a as conformity subtraction. However, I am unable to provide any label or explanation as to the nature of the subtraction. Is no explanation needed or is there a way to insert that information? Thank you again.

[baldietax]

when I do it, it goes on the ADJ/CG Line 6b with code 99 and it asks for a description which goes on the Other Subtractions Statement, tho I am not sure if that statement is part of the e-file as I've noticed it's not in the PDF used for "tax return only".

Just to add I've used this for AMD on discounted T-Notes reported on 1099B.  Whenever I've held T-Bills specifically, they've been reported by my brokerage on 1099-INT Box 3.

[user17568281569]

OK, I have found two ways to do it. The approach you described using line 6b and code 99 allows me to put a description on the other subtractions statement. The other way I found is to enter the number Online 6a, then double click and a dialogue box opens up, which allows you to enter the description and the amount. Both of these approaches correctly flow through to the 760. When I print the return as if I'm going to mail it, neither of those approaches shows the statement being printed or disclosed anywhere. Since you have had no issues using the line 6b and code 99, that's the one I'm going to use. Thanks again.