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mbooth200
New Member

Where do I enter the U.S. government bond interest in the Michigan state tax web form?

The government interest should be deducted from my taxable income on line 10 of Michigan Schedule 1 Additions and Subtractions.
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2 Replies

Where do I enter the U.S. government bond interest in the Michigan state tax web form?

Two possible places....both in the Federal section of the software

 

1) For individual US Bonds, Notes that you owned and for Savings Bonds you may have redeemed.  The $$ of interest are supposed to go into box 3 of a 1099-INT

 

2)  For US Govt bonds held in Mutual funds, or other bond fund collections, the $$ are included in box 1a on a 1099-DIV form, but that $$  amount will also include dividends from other stocks and bonds.   

....2a)  When you enter your 1099-DIV form and all it's boxes, there is a follow-up page where you check a box saying "A portion of these dividends is US Government interest"  .

...2b)  then on a later page you will be able to indicate what sub-$$ amount of box 1a came from US Govt bonds.  But, you have to calculate the exact $$ amount from whatever supplemental information the brokerage gives you.

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The $$ entered as I've noted in #1 and #2 above, should transfer and used as deductions in most state's tax returns. 

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(Exceptions being CA, CT, &NY ...who place severe restrictions on situation #2 above for 1099-DIV forms...as to whether the US Govt bond $$ can be broken out. No restrictions on box 3 on 1099-INT for individual US  bonds one may own)

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
mbooth200
New Member

Where do I enter the U.S. government bond interest in the Michigan state tax web form?

Thank you SteamTrain.  In my case it was your scenario 2.  I was able to put the data in and my state filing automatically updated.

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