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CI7
Level 2

US Agency Interest

How do I remove US Agency Interest reported in box 1 of 1099 INT from my MO state return?

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3 Replies
MayaD
Expert Alumni

US Agency Interest

Obligations issued by the United States government agencies and other exempt entities are tax exempt.

MO Department of Revenue

 

  1. Open your MO return.
  2. Continue until you get to the screen Do You Have Any of These Items Not Taxed by Missouri?
  3. Federally taxable Missouri exempt obligations
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CI7
Level 2

US Agency Interest

Thank you for your reply. 

 

When I check "Federally Taxable MO Exempt Obligations" (as you reference in your reply step 3), it takes me to a screen that is prepopulated with an amount based on my inputs through the federal tax return process.  The prepopulated amount includes all my federally taxable MO exempt obligations except the US Agency interest amount that was reported in box 1 of one of my 1099 INT forms.  I am not sure how to add this US Agency interest to this amount?  I am not sure if this adjustment should somehow be made in the federal return input process or if there is a way to adjust in the MO return?

JamesG1
Expert Alumni

US Agency Interest

In TurboTax Premier Desktop, Federally Taxable Missouri Exempt Obligations are reported in box 1 of the IRS form 1099-INT.

 

In the Missouri state income tax return, at the screen Missouri exempt interest, I enter the dollar amount of box 1 of the IRS form 1099-INT.

 

The subtraction is reported on Missouri form MO-A and MO-1040.

 

If you are seeing the amount on a screen where the amount may not be changed, perhaps you could delete the interest entry and re-enter.  The Missouri state software may pick up the interest upon the re-entry.

 

@c17

 

 

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