Virginia tax on US Saving Bonds

[ZTANN]

Yes. It adds it to the Federal income and puts that figure on the State return, then it subtracts it on the State return, which brings it back to the same taxable total as on the Federal return. The Series EE savings bond interest income is supposed to be subtracted from the VA state tax return. How do you get that to work? It goes automatically incorrectly on the VA tax return. 

[SteamTrain]

@ZTANN 

If you insist, and are absolutely sure  that TTX is still doing it wrong (i.e. you printed out your forms and checked the lines where it's added a second time, then subtracted)

......then you need to call TTX and report it so that a correction ticket gets written up.  They can get a diagnostic file from you and check all your entries and where they showed up in the VA software.

What is the TurboTax phone number? (intuit.com)

[sotto1158]

This is always tricky--but actually better this year on TurboTax. Make sure you specify the amount in the Federal 1099-DIV section. Then read the VA section very carefully and DO NOT enter the U.S. interest amount again (it's actually asking for something else). You can confirm that it's right by going to the VA Forms and making sure the amount is now just subtracted, without also being added.

[VolvoGirl]

@sotto1158   Why did you say 1099 DIV section?  Did you mean 1099 INT?  You enter Saving Bond interest on a 1099 INT and put the amount in box 3 (not box 1).  That's all you do.  It is automatically subtracted from the state returns.  

[JanAnnDan]

When entering interest on TurboTax, there is a checkbox right below that section that you must choose in order for the Box 3 to be displayed.  That is where interest from US treasury issues are entered, and will display in a different column.  It's all right there and easy once you see it, but it is all too easy to zip through entering simple amounts like interest.  This tripped me up the first time around, but when I located Box 3, the Virginia tax return was correct. 

[fmlybdgt]

What can a user do if they can see with 100% certainty that the "My form has info in other boxes (this is uncommon)." is checked, and only the "Box 3 - Interest on U.S. Savings Bonds and Treas. obligations" has a value entered, yet the VA form is still being calculated by TT with that value as an addition and also a subtraction?

[DaveF1006]

There should not be an amount listed as an addition, only a subtraction. Did you make an additional entry in your VA return under US Bond Income or some other entry?

If you reported the correct entry in Box 3 of the 1099 INT in your federal return, the amount transfers automatically as a subtraction to your Virginia Tax Return. You do not need to do anything additional in your VA return.

If you made an additional entry in your VA return, remove it as it will show as an addition to your state return. You do not want this to appear in your return.

@fmlybdgt 

[fmlybdgt]

Thanks @DaveF1006 

I reviewed the Virginia state part of my TT entries per your suggestion and did find US Bond Income reported there.  After studying the TT questionnaire guidance again I agreed it didn't belong there - thanks for the tip and for solving my problem.  The re-calculated 990 is now showing correctly:  no addition, only the subtraction.