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Returning Member
posted Feb 17, 2023 6:27:54 AM

Turbo Tax is not handling income from Savings Bonds Correctly on VA State Income Tax forms. They are adding the bond interest to the FAGI instead of subtracting it.

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1 Replies
Expert Alumni
Feb 17, 2023 7:45:53 PM

U.S. Savings Bond interest is included in federal adjusted gross income, but it’s not included in Virginia adjusted gross income.

 

The subtraction comes between the two numbers of line 7 of Form VA760CG.