US Govt Treasury Bills are not taxed by states. Where do I enter this on the Turbotax form?

[KREC]

@dmertz 

On the screen for the 1099 INT where it asks for uncommon situations, under “I need to adjust the taxable amount” i have entered the total that was provided by the broker in the summary pages for all “taxable accrued interest paid “(I assume if broker provided a grand total that it can be entered as such? Although I’m curious as some of accrued interest paid is on Treasury yet the 1099 supplemental has listed all in the “taxable accrued interest paid” line and Zero in the “.taxable accrued treasury interest paid” line? 

Separate but related, in the interview when I click on my state (MD) doesn’t tax all of this interest, what flows to the Maryland 502SU is incorrect. It’s reducing the box 3 amount when it transfers to the MD form; on ab it is including presumably an adjusted amount from box 1 and 3 from 1099 (probably adjusted for the accrued interest paid from the adjustment box) and then adding them together to put in line ab? It seems you can’t enter an adjustment and also select my state doesn’t tax all of this interest ?

[KREC]

So the abp adjustment  for box 12 gets listed on schedule B but does anything special happen with box 11 with regards to schedule b or just enter it as it appears on 1099 int? I import my 1099 int so it automatically populated boxes 1, 3, 11 and 12.

[SteamTrain]

Because 11 & 12 are actually listed on the 1099-INT, those $$ get subtracted from the box 1 and 3 values (respectively) before they go to the schedule B.   So they don't need to get listed separately on the Sched B.

Thus if you only had one 1099-INT with  Box 1 at  $1022, and box 11 was $22, the schedule B should have $1000 on it.

[KREC]

@SteamTrain 
Separate but related question. Broker has a section in composite 1099 below 1099 int which states following are not reported but presented here for your reference. First line has the “taxable accrued interest paid” with $1xxx. All other lines below, including “taxable accrued treasury interest paid” are zero. When I go to the interview and it asks for adjustments and I list the $1xxx as accrued interest, it then shows it on the schedule b. But when I get to my MD state form, it has reduced the amount on form 502SU line ab by several hundred dollars from what it was before I entered the adjustment (prior to adjustment, line ab on the 502SU consisted of box 3 minus box 12 from the 1099 int. Is this correct? 

[SteamTrain]

I don't know the MD forms, nor exactly how your brokerage is reporting.

_________)_)

But from what you just posted:

It sounds like the interest accrued reported in your last statement, is referring only to interest accrued on bond interest reported in box 1.  Make sure that the box 1, box 11, and accrued interest for the box 1 $$ are only reported on entirely separate 1099-INT.

Beyond that, I have no Idea if the MD forms are using it properly. 

Sorry I can't help with that.

Certainly you could wait to see if someone more knowledgeable than I am responds...but in this public forum , you get what you get.

____

Any tax courses at your local community college?  Time to sign up?

[KREC]

@SteamTrain  
Thanks. One additional question. When the adjustment for accrued interest paid is made on schedule B, that flows to the state form and  the amount of us obligation on the state form now should reflect box 3 minus box 12 minus the accrued interest adjustment (as opposed to just box 3 minus box 12.) Correct?

[SteamTrain]

@KREC 

I would think so...yes.

[hfminmi]

Everything you wrote was correct however my state income tax refund went down when I entered the U.S. Treasurty obligations instead of increasing.

I think there is a glitch in the Turbo Tax software on this issue that needs to be addressed sooner than later.

[hfminmi]

I should have noted I am a Michigan resident and filing a Michigan return.

[AmyC]

Your 109-INT in box 3 goes straight to MI sch 1 line 10 as a subtraction to income. You may have something else happening. Please review your tax form to see that subtraction exists and look for anything out of place. To see your forms:

• In desktop, switch to Forms Mode. 
• For online, see How do I preview my TurboTax Online return before filing?
  @hfminmi