My interest from Ally bank is being deducted on my Massachusetts 2024 Schedule D????

[AmyC]

Schedule B is what I am going to assume you meant (since sch D is for capital gains and losses). The sch B does deduct the interest from the interest to get zero at the bottom line. The zero is the amount of allowed deduction - a hold over from last year when MA did allow a small bank interest deduction. 

Look at your Form 1, line 5 and you should see the bank interest is included in your taxable income.

You can see the updated law on page 3 of  Form 1 instructions.