1099 Int Worksheet not matching Virginia Form 760

[JRJ9]

On Fed 1099-Int Worksheet, Box 3 (US Treas Obligation) = 7,187.50 Adjustments to interest (accrued interest) = 3,259.91.  Total 3,927.69.  This is a deduction on The Virginia Form 760, line 7 (Subtractions).  Amount showing is 3,988.  Difference of 60.00  The worksheet for Virginia ADJ/CG, line 4 shows 3,988.  I can manually adjust, but there must be a problem in software that is causing this.  I filed a case #1512916743 and got a response that case was closed with no explanation.  Have a Support ID 1514064240  but phone conversation was dropped in middle of call.  No way to get back with individual.  I do taxes on desktop.  Turbo tax needs better way to report issues and get a response.

[SteamTrain]

@JRJ9 

One thing you might need to check....do you have any $$ in boxes 1 or 8 too?

If you do, take your box 3 $$ out of that 1099-INT (together with box 12 too if any) and place those $$ in it's own 1099-INT before reporting the accrued interest related box 3 $$ on that separate 1099-INT.

That might fix it. 

______

Whenever accrued interest is to be reported....if any combination of $$ on at least two boxes 1,3,&8 exist on a single 1099-INT....the accrued interest must be reported on it's own separate 1099-INT, along with whatever bond-type the accrued interest refers to. 1&11 go together, 3 & 12 go together, 8,9&13 go together.

[SteamTrain]

Another possibility...though we can't see exactly what you reported...

Did you enter a 1099-DIV form, with $60 of box 1a designated as coming from US Govt Bonds. That could add to the amount you are seeing.

[JRJ9]

No additional 1099-DIV with $60 in box 1a.

[JRJ9]

1099-Int Worksheet, Box 1 = 136.78 taxable Fed and VA, Box 3 = 7,187.50 taxable Fed only, Adjustments to interest, Box A (accrued interest) 3,259.91.  

Va Form 760, Line 7 (subtraction) = 3,988.  Same on Schedule ADJ/CG (subtractions line 4).  Should be 3,928.  

Makes no sense where extra 60 came from.  I can manually adjust and move on.

[SteamTrain · Accepted solution]

@JRJ9 

..... $60  of accrued interest was assigned to the box 1 $$, so it reduced the amount deducted from box 3 by $60.  So the $ transferred to VA for subtraction there, was increased by $60.  (and if you hadn't noticed yet...it also improperly reduced your Federal interest income by $60)

_________________

Like I indicated in one of my posts above

.....Put box 3 $$ (&box 12 if any) into it's own 1099-INT and then declare the accrued interest on that 1099-INT

...and the box 1 $$ in it's own 1099-INT

When box 1 and 3 $$ are on the same 1099-INT, the accrued interest is applied proportionally to any existing box 1, 3, & 8 $$....and the proportionate amount applied to box 1 was right at $60.  

Yoru accrued interest that you entered the way you did...did not indicate which box $$ it was supposed to be applied to...that's why you have to break out the $$ into their own 1099-INT.  Some day, TTX might create multiple lines for the accrued interest, so they can be applied properly to the right box...but it's not there yet

[JRJ9]

Thanks for your answer.  Looks like Turbo Tax needs to work on there instructions. 

[JRJ9]

Thanks for your explanation as to why the $60 increase was showing up in the VA 760, line 7.  Your explanation was what I was looking for as top why it happened.  To correct, I took the easy way out by clicking on line 7 which opened up the ADJ/CG schedule.  I edited line 4 to the correct amount.  VA return is now correct.