Good day. I live in MA and will be filing an MA state return. I received a 1099-INT from a popular bank covering interest I receive from CDs and a High Yield Savings Account. The import worked great. I chose to "Edit" the entry just to review and confirm everything was imported correctly, but after clicking "Continue”, I get a screen I've never seen before.
The screen says, “Do any of these uncommon situations apply?”, with one of the options being, “My state (ME, MD, MA, NH, NJ, or WV) doesn't tax all of this interest.”. When I click the drop down, I see there is an option for MA, called, "MA Bank" (see screen shot attached)
I live in MA and I am filing an MA state return. So, since MA is listed here, should I choose “MA Bank” from the drop-down menu for any 1099-INT I have? I always get a little nervous because it says it's an "uncommon situation", but since I do live in MA, and MA is listed for this "uncommon" situation, does this mean I definitely should choose the option for MA (called "MA Bank")?
Also, what kind of impact does choosing "MA Bank" actually have on my federal and/or MA state return? Could it change the return? I read the "Learn More", but didn't really understand it. Thank you!
If you have income that can be excluded, you want to identify and exclude it. Select the drop down box and determine if you have any items to exclude. MA exempts local banks int up to $200 MFJ and all fed obligations. I have another post with more information and screenshots of how it works.
Thank you! So I shouldn't just automatically choose that box just because I live in MA? There's an investigation I need to do to determine if I can check the box?
Yes, that's what our Tax Expert @AmyC is telling your and be sure to check out her other post with additional details in the link she provided.