Should I make a NY subtraction on line27 of a NY IT203 return for savings bond interest? Why does turbo tax do federal adj for it even if I paid federal tax?

[gamb457]

The adjustment to the federal income causes NY state income to be higher than federal income resulting in more tax even though NY doesn't tax savings bond interest

[baldietax]

how was the savings bond interest input on the Fed side, is it in 1099-INT Box 3?

one thing to try if 1099s are not flowing thru to state correctly is to re-input the 1099 manually to see if that works and delete the old one (or just input the savings bonds on a separate 1099-INT), especially if it was imported.

[AmyC]

Line 27 is the section for determining NY income divided by federal income and they are trying to get things as close as possible (apples to apples) to determine your actual NY percentage to calculate your NY tax liability.

It is possible for NY income to be higher than federal due to taxing differences. Review your forms for accuracy. You are doing great catching this and asking questions.

[gamb457]

It's just confusing Turbo tax brought over the savings bond interest in the federal column but not the NY column.