I am using TurboTax Premier which entitles me to also get a State Tax Return. I am a resident of Alabama and I have discovered that the TurboTax software does not accurately treat US Savings Bond interest. Interest on US Savings Bonds is not taxable in Alabama but the TurboTax software treats it as taxable. This is something that needs to be fixed.
TurboTax Premier does not tax U.S. savings bond interest in Alabama if you enter the interest in Box 3 – Interest on U.S. Savings Bonds and Treas. Obligations. Do not enter Savings Bond interest in Box 1 – Interest Income.