US savings bonds iinterest taxable

[thebestone]

Is US savings bonds interest state taxable?

[SweetieJean]

No it is not.

[Mike9241]

is not now and never hasbeen. enter on line 3 of form 1099-int.  states are different on how they adjust for this. many start with federal AGI and then subtract the US savings bond interest.  others are start over where each taxable item flows from feral to sate. this interest would not flow.  besides savings bond interest also state tax expemt is US T-bill, T-Note and T-bond interest.  in addition some states exempt federal agency interest like FNMA or FHLB.  becuase this is specific to each state going into the state return and making a subtraction may be required.

if used for higher education savings bond interest is also exempt for US purposes. form 8815 must be included with the federal return. becuase it is already subtracted from federal AGI, you'll not see a subtraction on your state return.