Virginia tax on US TREASURY NOTES

[Bogos3412]

Virginia tax on US Treasury notes?

[MaryK4]

There is no Virginia tax on US Treasury bonds.

Va. Code §58.1-322 C provides a subtraction, to the extent included in federal adjusted gross income, for:

1. Interest or dividends on obligations of the United States and on obligations or securities of any authority, commission or instrumentality of the United States to the extent exempt from state income taxes under the laws of the United States including, but not limited to, stocks, bonds, treasury bills, and treasury notes, but not including interest on refunds of federal taxes, interest on equipment purchase contracts, or interest on other normal business transactions.

2. Interest on obligations of this Commonwealth or of any political subdivision or instrumentality of this Commonwealth.

In the Virginia state tax section, look for the page that says "Here's the income that Virginia handles differently".  You will enter under Investments= Exempt US Bond Income

[Petegallini]

In response to a question on how VA taxes US obligations, another user was told to go to Exempt US Bond Income.  But that section is described in Turbo Tax as

"If you had income from interest or dividends on US obligations (bonds) or securities that is exempt from federal taxes, you'll need to add that income, minus expenses, to your Virginia state return."

I am looking for income that was not exempt from Federal taxes, but is exempt from VA taxes, creating a subtraction on the VA taxes.  Where is that input in Turbo tax--I've done this several years in a row in Turbo Tax

[Petegallini]

Nevermind, I found it.  I needed to input this income on my federal return when i entered the information from my 1099 for that mutual fund.