Form 8960 box 9b and T-bills

[chessgm]

Hi,

   This is my first year itemizing since the SALT cap lifted to make it worth using that instead of the standard deduction. My question is that form 8960 box 9b is being filled out by Turbotax but the only interest I have is from T-bills which is tax exempt at the state level. Am I still able to attribute the T-bill interest to state and local taxes like that even though I'm not paying state and local taxes?

if not, how do I tell turbotax to redo the calculations without it?

[DianeW777 · Accepted solution]

It depends. The line 9b, Form 8960, is specifically for your State, Local and Foreign Income Tax. It would not be associated with your interest from Treasury Bills. Compare the numbers with your deductions on Schedule A, if applicable.

• Instructions Form 8960

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