The Massachusetts bank interest question is part of the interest section in Federal.
Here’s how to tell TurboTax you have MA bank interest:
- Type interest in Search in the upper right
- Select Jump to interest
- Say YES to Did you have investment income in 2022?
- After you’ve entered your interest, you will see a screen “Do any of these uncommon situations apply?”
- Select My state (ME, MD, MA, NH, NJ, or WV) doesn’t tax all of this interest.
- In the dropdown select Massachusetts bank interest
For Massachusetts income tax purposes, interest on money market deposit accounts in banking institutions located in Massachusetts will be includible in Massachusetts gross income as Part B income, taxable at the rate of 5% plus surtax, and will be eligible for the $100 deduction ($200 for a husband and wife filing a joint return) provided by General Laws Chapter 62, Section 3(B)(6).

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