Subtraction of US Bond Interest

[mjameswoolsey]

Hello,

my wife and I are Minnesota year-round residents, filing a joint return. She received a 1099-INT from the US Treasury that declares that she was paid an Annual Interest of $4,875. By a note on the back of the 1099-INT, this interest is "exempt from state and local income taxes," but it does not appear as a subtraction on the Minnesota tax form M1M that is generated by TurboTax. 

Please advise. This looks like a bug in the Turbo Tax system. 

[AnnetteB6 · Accepted solution]

Double-check your entry in the Federal return for the interest income. 

Interest income entered in box 3 is considered taxable only on your Federal return and will automatically be adjusted on your state return.  

[mjameswoolsey]

Thank you. I Made the same mistake on last year's return as well. I amended my return and eFiled it, both Federal and State returns. The Federal amended return was accepted already, the State amended return  is "in progress." Now I see that I'm supposed to mail the forms by USPS as well? Is that right?

[AliciaP1 · Accepted solution]

That is correct.  TurboTax is not able to e-file MN amended returns so you will need to print the return and mail it.  Your federal amendment is authorized for e-file so you do not need to mail that one.